Brindabella blames the carbon tax as it axes routes

[markis10]

A REGIONAL airline operating out of Canberra has cited the carbon tax as a ''major factor'' in its decision to axe two of its regular routes in favour of the more lucrative charter business catering to the resources boom.
Brindabella Airlines, a Qantas affiliate that runs a small regional network, will cancel its flights between Canberra and Albury - traditionally used by Australian Tax Office workers - and Brisbane and Armidale.
The announcement sparked a stoush in Parliament, with the Coalition hammering the government over the axing of the routes and disagreement over the statement released by Brindabella highlighting the carbon tax's impact.
Chief operating officer Ian Vanderbeek said the carbon tax would cost the airline about $1000 a day. The extra impost was one of several factors that were making the routes unprofitable, he said.

http://www.coastaltimes.com.au/news...s-carbon-tax-for-axing-of-routes/2573538.aspx

 

[MarkD]

This is just the beginning There will be so much more of this sort of thing, across all industries. Well done australia, very well done


Excuse the typos, this was sent from my iPhone using Fat fingers

 

[Moody]

Right ... so $1000 a day is exactly how much of Brindabella's operating budget? And equates to exactly how many dollars and cents per pax per leg?

Oh - but they are increasing capacity on FIFO routes. Hmm ..... cynical me says that they are simply shifting operations to lucrative mining routes from traditional public service routes, and were looking to deflect the attention away from the pure profit motive.

The only surprising thing is the number of supposedly intelligent people who are taken in by this corporate bullshat. Or maybe they are also being conservative with the truth for their own purposes. There's a lot of it about.

 

[garee]

Totally agree with Moody. Here is the press release from Brindabella.

"Following a significant rise in charter enquiries resulting from growth in the resources sector Aeropelican and Brindabella Airlines will increase the availability of their aircraft in New South Wales and Queensland to take advantage of ad-hoc and contract FIFO opportunities.



From the 8th June we shall stop the daily Brisbane to Armidale and Canberra to Albury services and make these aircraft available for charter said Group Chief Operating Officer Ian Vanderbeek.
Vanderbeek said that the introduction of the federal government’s carbon tax and the removal of the en-route rebate scheme, both from the 1st July, were major factors in the company’s decision. Both of these routes are marginal and cannot be sustained with the additional cost impost that these changes will bring said Vanderbeek.
Aeropelican and Brindabella are well placed to serve the growing demand for whole of aircraft charter in the 18-30 seat range, with aircraft strategically based in Brisbane, Canberra and Sydney and able to react at short notice said Vanderbeek.
According to Vanderbeek the increased charter availability Will complement our daily scheduled service flights to the resource rich communities of Cobar, Mudgee and Narrabri and will provide greater flexibility to those companies and groups who need to charter aircraft for short or long-term requirements.
Aeropelican and Brindabella Airlines provide scheduled services to the regional communities of Cobar, Coffs Harbour, Narrabri, Newcastle, Mudgee and Tamworth and winter flights to Cooma, in addition to a substantial charter operation servicing New South Wales and Queensland.

 

[whatmeworry]

From the article, it sounds more like Brindabella is using the carbon tax as a way of attacking the government for the scrapping of the En-Route Navigation Rebate Scheme. Also the journalist is over exaggerating that it was a "major factor" when in fact the Brindabella COO described it as one of several factors. Just easier to attack the government over the carbon tax rather then the removal of En-Route Navigation Rebate Scheme.

Chief operating officer Ian Vanderbeek said the carbon tax would cost the airline about $1000 a day. The extra impost was one of several factors that were making the routes unprofitable, he said.

 

[codash1099]

Will this work both ways? Will they "cut back services" because of the carbon tax and at the same time raise fares to cover it?

Perhaps I'm just cynical.

 

[danielc]

What nonsense! Funny he knows precisely how much the carbon tax will cost him per day but doesn't mention a word about how much of taxpayer's money they received for their 'en-route rebate scheme'. Perhaps their business patronage is falling off as government departments are facing increased demands to cut costs...Now let's see, which is more economical: Pay $54.05 for a 300km+ First Class journey on Countrylink or give an airline $200+ for the same trip?

 

[Mal]

... One of several factors.

I doubt the rebate for air services Australia traffic control charges is small and also is being scrapped.

They aren't a charity. If they can't make money theyes are free to drop routes. And yes the carbon tax would have been one nail in the coffin...

Sent from my GT-I9100 using AustFreqFly

 

[eastwest101]

And don't forget that by moving their client base and traffic to Cobar (base metal mining) and central NSW (coal) then they are hitching their wagon to the mining industry. Which would be a smart move about 6 years ago, but now I am not so sure with the MRRT and Carbon Tax on the way for the mining industry. Result will be less mining and more public sector employes, so I expect this to be reversed again in the future.