The $10 million of funding set aside for the project will instead be redirected to a new $30 million entertainment hub.
Prime Minister Scott Morrison has promised the scheme will be reviewed at the end of June, and also hinted it could be extended to more vulnerable industries.
The airline will also add additional routes to Sydney as part of its new ‘minimum connectivity network’, which will run from 8 June to 31 July.
Civil Air said the action plan laid out by the report, and instigated by the business doesn’t go far enough and could be “another hollow commitment to change”.
The competition watchdog said it had been “closely scrutinising” the 19.9% share purchase and was focusing on the “competitive dynamics” between the two airlines.
The prize, which began in 2011, is open to those who are already undertaking training for a pilot’s licence.