Regional Routes - Government subsidies?

[schomers87]

Saw this on Adelaide morning radio this morning. Although left of centre, I can see both sides of the argument here free market/viability questions vs looking after regional Australians who are geographically disadvantaged which leads to economic/social disadvantages. What's everyone's thoughts here in terms of the role of the fed government in creating subsidies? Given there is market failure for many of these routes, I'm leaning towards some kind of role of government.

Paul Tyrrell, Chief Executive, Australia’s Regional Aviation Association (891ABC 10.27-10.34)
(Tribe: Australia’s regional airlines have begun a bit of a push for a national system to help provide air services on financially unsustainable routes. Joining us now is Paul Tyrrell … you want to rebuild some regional routes and work with national, private and State parties to make it happen. How would the system you propose actually work?) It’s something we’ve been working on for some time … in the last 25 years approximately half the regular public transport routes to regional Australia have been lost and we feel that’s going too far.

 

[markis10]

I have shortened you post as it does not meet our guidelines re news and copyright, a link is also required please.

On the subject matter, the discussion talks about a federal scheme, whilst in reality its the states that are already doing it, of course thats not helpful for cross border ops, but its worth pointing out that it exists.

 

[schomers87]

I have shortened you post as it does not meet our guidelines re news and copyright, a link is also required please.

On the subject matter, the discussion talks about a federal scheme, whilst in reality its the states that are already doing it, of course thats not helpful for cross border ops, but its worth pointing out that it exists.

Understood. Will post link when comes to hand.