Question regarding the high cost of intrastate air travel in WA compared to interstate/international routes, and whether the Minister will allow competition to Skywest Airlines on certain routes. The Minister expresses caution about deregulation, prioritising service stability over potential short-term cost benefits.

AnsweredQoN 446Legislative Council
Asked
7 May 2009
Portfolio
Transport

QuestionView source ↗

INTRASTATE AIR ROUTES
Given that competition has made air travel consistently cheaper from Perth to Sydney than from Perth to Esperance, and more recently on the international routes cheaper from Perth to Tokyo, Hong Kong, Singapore, Bali or Jakarta than it is to fly to Esperance will the minister allow competition to Skywest Airlines on the Perth to Esperance, Perth to Albany, and Perth to Geraldton routes to give the long-suffering residents, tourist operators and visitors to those towns affordable air travel? Hon SIMON O’BRIEN

AnswerView source ↗

As I have already indicated to the house, after suitable consultation and consideration with colleagues, industry stakeholders and the community, the government will shortly receive recommendations from me on the future policy for intrastate air routes; it needs to be a whole-of-government decision. I have also made it clear to the house that I want to ensure that all of the communities that are currently serviced by air services—and very important services they are for many regional and remote Western Australian communities—will continue to have access to those services. The only change I want to see is a better service for these communities. What I do not want to see is intemperate decisions — Hon Anthony Fels : What about cost? Hon SIMON O’BRIEN : — that lead to a decline in services. I am not satisfied that the case has been made for open deregulation of Western Australian intrastate air routes. Hon Anthony Fels : So you are happy with a monopoly situation? Hon SIMON O’BRIEN : The member should not try to put words into my mouth; he has asked me a question! I am concerned that we have good services. There are plenty of examples throughout Australia in recent history when air services have been interfered with in the name of free markets and competition and so on. It can happen that the resulting low fares from the initial composition are a short-lived benefit, as aspiring airlines go out of business. When one looks back at recent history, the number of airlines that have gone out of business in Western Australia because they thought they were better at providing services than they were is quite alarming. We do not want to see that happen again and end up with the potential situation, say on the Esperance route, where no-one is left standing after competition. I cannot prejudge the decision that I will be asking cabinet to make because that is a whole-of-government decision. I think I have given the member a clear indication of my view about the future of intrastate air services in Western Australia. While I am minister I will ensure they are guaranteed to the greatest extent that any government can.
Hon SIMON O’BRIEN replied: As I have already indicated to the house, after suitable consultation and consideration with colleagues, industry stakeholders and the community, the government will shortly receive recommendations from me on the future policy for intrastate air routes; it needs to be a whole-of-government decision. I have also made it clear to the house that I want to ensure that all of the communities that are currently serviced by air services—and very important services they are for many regional and remote Western Australian communities—will continue to have access to those services. The only change I want to see is a better service for these communities. What I do not want to see is intemperate decisions — Hon Anthony Fels : What about cost? Hon SIMON O’BRIEN : — that lead to a decline in services. I am not satisfied that the case has been made for open deregulation of Western Australian intrastate air routes. Hon Anthony Fels : So you are happy with a monopoly situation? Hon SIMON O’BRIEN : The member should not try to put words into my mouth; he has asked me a question! I am concerned that we have good services. There are plenty of examples throughout Australia in recent history when air services have been interfered with in the name of free markets and competition and so on. It can happen that the resulting low fares from the initial composition are a short-lived benefit, as aspiring airlines go out of business. When one looks back at recent history, the number of airlines that have gone out of business in Western Australia because they thought they were better at providing services than they were is quite alarming. We do not want to see that happen again and end up with the potential situation, say on the Esperance route, where no-one is left standing after competition. I cannot prejudge the decision that I will be asking cabinet to make because that is a whole-of-government decision. I think I have given the member a clear indication of my view about the future of intrastate air services in Western Australia. While I am minister I will ensure they are guaranteed to the greatest extent that any government can.
As I have already indicated to the house, after suitable consultation and consideration with colleagues, industry stakeholders and the community, the government will shortly receive recommendations from me on the future policy for intrastate air routes; it needs to be a whole-of-government decision. I have also made it clear to the house that I want to ensure that all of the communities that are currently serviced by air services—and very important services they are for many regional and remote Western Australian communities—will continue to have access to those services. The only change I want to see is a better service for these communities. What I do not want to see is intemperate decisions — Hon Anthony Fels : What about cost? Hon SIMON O’BRIEN : — that lead to a decline in services. I am not satisfied that the case has been made for open deregulation of Western Australian intrastate air routes. Hon Anthony Fels : So you are happy with a monopoly situation? Hon SIMON O’BRIEN : The member should not try to put words into my mouth; he has asked me a question! I am concerned that we have good services. There are plenty of examples throughout Australia in recent history when air services have been interfered with in the name of free markets and competition and so on. It can happen that the resulting low fares from the initial composition are a short-lived benefit, as aspiring airlines go out of business. When one looks back at recent history, the number of airlines that have gone out of business in Western Australia because they thought they were better at providing services than they were is quite alarming. We do not want to see that happen again and end up with the potential situation, say on the Esperance route, where no-one is left standing after competition. I cannot prejudge the decision that I will be asking cabinet to make because that is a whole-of-government decision. I think I have given the member a clear indication of my view about the future of intrastate air services in Western Australia. While I am minister I will ensure they are guaranteed to the greatest extent that any government can.
I have also made it clear to the house that I want to ensure that all of the communities that are currently serviced by air services—and very important services they are for many regional and remote Western Australian communities—will continue to have access to those services. The only change I want to see is a better service for these communities. What I do not want to see is intemperate decisions — Hon Anthony Fels : What about cost? Hon SIMON O’BRIEN : — that lead to a decline in services. I am not satisfied that the case has been made for open deregulation of Western Australian intrastate air routes. Hon Anthony Fels : So you are happy with a monopoly situation? Hon SIMON O’BRIEN : The member should not try to put words into my mouth; he has asked me a question! I am concerned that we have good services. There are plenty of examples throughout Australia in recent history when air services have been interfered with in the name of free markets and competition and so on. It can happen that the resulting low fares from the initial composition are a short-lived benefit, as aspiring airlines go out of business. When one looks back at recent history, the number of airlines that have gone out of business in Western Australia because they thought they were better at providing services than they were is quite alarming. We do not want to see that happen again and end up with the potential situation, say on the Esperance route, where no-one is left standing after competition. I cannot prejudge the decision that I will be asking cabinet to make because that is a whole-of-government decision. I think I have given the member a clear indication of my view about the future of intrastate air services in Western Australia. While I am minister I will ensure they are guaranteed to the greatest extent that any government can.
Hon Anthony Fels : What about cost? Hon SIMON O’BRIEN : — that lead to a decline in services. I am not satisfied that the case has been made for open deregulation of Western Australian intrastate air routes. Hon Anthony Fels : So you are happy with a monopoly situation? Hon SIMON O’BRIEN : The member should not try to put words into my mouth; he has asked me a question! I am concerned that we have good services. There are plenty of examples throughout Australia in recent history when air services have been interfered with in the name of free markets and competition and so on. It can happen that the resulting low fares from the initial composition are a short-lived benefit, as aspiring airlines go out of business. When one looks back at recent history, the number of airlines that have gone out of business in Western Australia because they thought they were better at providing services than they were is quite alarming. We do not want to see that happen again and end up with the potential situation, say on the Esperance route, where no-one is left standing after competition. I cannot prejudge the decision that I will be asking cabinet to make because that is a whole-of-government decision. I think I have given the member a clear indication of my view about the future of intrastate air services in Western Australia. While I am minister I will ensure they are guaranteed to the greatest extent that any government can.
Hon SIMON O’BRIEN : — that lead to a decline in services. I am not satisfied that the case has been made for open deregulation of Western Australian intrastate air routes. Hon Anthony Fels : So you are happy with a monopoly situation? Hon SIMON O’BRIEN : The member should not try to put words into my mouth; he has asked me a question! I am concerned that we have good services. There are plenty of examples throughout Australia in recent history when air services have been interfered with in the name of free markets and competition and so on. It can happen that the resulting low fares from the initial composition are a short-lived benefit, as aspiring airlines go out of business. When one looks back at recent history, the number of airlines that have gone out of business in Western Australia because they thought they were better at providing services than they were is quite alarming. We do not want to see that happen again and end up with the potential situation, say on the Esperance route, where no-one is left standing after competition. I cannot prejudge the decision that I will be asking cabinet to make because that is a whole-of-government decision. I think I have given the member a clear indication of my view about the future of intrastate air services in Western Australia. While I am minister I will ensure they are guaranteed to the greatest extent that any government can.
Hon Anthony Fels : So you are happy with a monopoly situation? Hon SIMON O’BRIEN : The member should not try to put words into my mouth; he has asked me a question! I am concerned that we have good services. There are plenty of examples throughout Australia in recent history when air services have been interfered with in the name of free markets and competition and so on. It can happen that the resulting low fares from the initial composition are a short-lived benefit, as aspiring airlines go out of business. When one looks back at recent history, the number of airlines that have gone out of business in Western Australia because they thought they were better at providing services than they were is quite alarming. We do not want to see that happen again and end up with the potential situation, say on the Esperance route, where no-one is left standing after competition. I cannot prejudge the decision that I will be asking cabinet to make because that is a whole-of-government decision. I think I have given the member a clear indication of my view about the future of intrastate air services in Western Australia. While I am minister I will ensure they are guaranteed to the greatest extent that any government can.
Hon SIMON O’BRIEN : The member should not try to put words into my mouth; he has asked me a question! I am concerned that we have good services. There are plenty of examples throughout Australia in recent history when air services have been interfered with in the name of free markets and competition and so on. It can happen that the resulting low fares from the initial composition are a short-lived benefit, as aspiring airlines go out of business. When one looks back at recent history, the number of airlines that have gone out of business in Western Australia because they thought they were better at providing services than they were is quite alarming. We do not want to see that happen again and end up with the potential situation, say on the Esperance route, where no-one is left standing after competition. I cannot prejudge the decision that I will be asking cabinet to make because that is a whole-of-government decision. I think I have given the member a clear indication of my view about the future of intrastate air services in Western Australia. While I am minister I will ensure they are guaranteed to the greatest extent that any government can.
I cannot prejudge the decision that I will be asking cabinet to make because that is a whole-of-government decision. I think I have given the member a clear indication of my view about the future of intrastate air services in Western Australia. While I am minister I will ensure they are guaranteed to the greatest extent that any government can.

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