Published on Tuesday, 24 April 2018 at 3:53:12 PM
The Town of Port Hedland has rejected a proposal by Aviair Pty Ltd and the Pilbara Regional Council (PRC) for the Town to subsidise a regular public transport aviation service across the Pilbara.
The North West Flight Network (NWFN) proposal requires the Town to pay a financial subsidy of up to $961 000 to Aviair Pty Ltd, for a period of two and a half years to establish a regular public transport aviation service.
The proposal requires subsidies from councils based in Broome, Karratha, Newman and Exmouth who endorse the North West Flight Network.
Mayor Camilo Blanco said that although there is a desire in the community to work towards cheaper airfares, the proposal exposed the Town to a number of potential risks and did not meet community expectations.
“If the proposal had been accepted, the Town could potentially be open to legal challenges from any air service suppliers, with regards to the procurement process followed, who may have wished to express an interest in providing a regular public transport aviation service. Since the Town has not budgeted for this expense, endorsing the proposal would have added a significant financial burden to the Town’s rate payers.
“Further, the PRC NWFN business case survey of key stakeholders found that 25 of 31 respondents had either ‘no’ or a ‘low level’ of demand for the service.
“Complimenting this finding, the Town’s recent Strategic Community Plan consultation process did not reveal significant interest in a regional air service.
“The Town will continue to advocate for lower regional airfare prices, such as our submission to the Senate Standing Committees on Rural and Regional Airfares and Transport earlier this year.”
For media information
Laura Hawes, Senior Communications Officer
(08) 9158 9365
lhawes@porthedland.wa.gov.au
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