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Via the other Aunty today:

Regional flights in state of 'crisis': calls for government to step in over JetGo woes
ABC Western Plains 
By Lucy Thackray and Chloe Hart
Updated 56 minutes ago

PHOTO: When regional airline carrier JetGo went into administration, it left thousands of ticketholders out of pocket and without a local carrier. (ABC Western Plains: Nick Lowther)

There are calls for the New South Wales Government to subsidise regional airline services, with the voluntary administration of carrier JetGo Australia this month leaving regional communities without direct flights to some capital cities.

Key points

• Regional airline JetGo Australia owes $17 million, with a potential debt of $34 million, and is facing action at the Supreme Court
  
• More than 10 thousand passengers are pursuing refunds through the banks, with a total ticket value of $4 million
  
• Doctor may be leaving western New South Wales town because of loss of airline
  

In late May Dubbo Regional Council lodged legal action against JetGo Australia in the Supreme Court over more than $270,000 owed by the airline in unpaid fees.

All flights were then cancelled on June 1, leaving more than 10,000 customers pursuing $4 million in refunds.

The full extent of the regional airline's debt was revealed at a creditors' meeting last week to be a confirmed $17 million, but is potentially higher.

JetGo Australia operated flights from regional locations including Dubbo, Wollongong and Albury in NSW; Townsville and Rockhampton in Queensland; and Karratha in Western Australia.

It is the only airline which connects these regional destinations with Brisbane, the Gold Coast and Melbourne.



PHOTO: Dubbo Regional Council has lodged a claim with the Supreme Court over unpaid debts from JetGo.(Supplied: Dubbo City Council)

Doctors to regional towns

Rochana Chandraratne is a Brisbane-based doctor who has been working in Warren, north-west of Dubbo in NSW, as a locum doctor for three years.

Dr Chandraratne uses JetGo to fly from Brisbane to Dubbo for work.

"I work as a GP there and also I look after the hospital as an on-call GP," said Dr Chandraratne.

"There are another two doctors in the area and both of them are travelling.
"One commutes from Sydney and the other from Dubbo."

Although Dr Chandraratne loves his work in Warren, he said without a direct route between Brisbane and Dubbo, he might have to find work elsewhere.

"It is really difficult coming to Sydney from Brisbane," said Dr Chandraratne.
"Those flights are always fully booked and then after that from Sydney you have to wait another hour to catch the flight to Dubbo.

"If I'm given another choice to work in another location where there's a direct flight, I'll consider that because taking two flights is a tiresome thing and more expensive as well.

"If JetGo can resume their service it would be wonderful."

Calls for government to help

The Regional Aviation Association of Australia (RAAA) said there needed to be more support from the NSW Government for regional airlines.

Chief executive Mike Higgins said it was very hard for regional airlines to make a profit.



PHOTO: A Jetgo plane at Illawarra Regional Airport. (ABC Illawarra: Justin Huntsdale)

"A number of our operators are operating on very slim margins due to the long, thin routes that the aircraft fly and the small size of the aircraft," he said.

Mr Higgins said it was difficult for regional flights to be profitable for smaller airlines.

"If you are operating a 737 that Virgin or Qantas operate, passenger numbers plus or minus 15 or 20 really doesn't make much difference," Mr Higgins said.

"But on our operators' sized aircraft, one or two passengers can make a difference of operating at a loss or making ends meet.

"To survive, we need high load factors; that is, the aircraft need to be almost full, if not full, on every flight.

"In terms of financial support I think the Queensland Government sets the benchmark [by] providing subsidies to routes through remote communities.

"I would encourage other state governments to engage with the Queensland Government to see the kind of benefits that sort of investment can provide."

Assistance for passengers

Qantas has offered special fares for customers who are JetGo ticketholders and were booked to travel in the month of June.

A spokesperson for the airline says hundreds of people have already used their special fare to book replacement tickets.

"The fares are available up to June 30 because that is how long JetGo said they would be in administration for," the spokesman said.

"If it continues, obviously we'd look at what we can do."

MTF...P2