Originally Posted by
neville_nobody
It will be a bad move by any government to keep propping up airlines. It’s the old profits go private debt goes public scenario. Why should tax payers who by a large majority live in urban areas prop up a foreign owned ASX listed regional airline? Not to mention all the moral hazard generated by such a move. There’s also the issue of picking winners. Why is REX any more important than Bonza, Virgin or Ansett?
At least in NSW, there's nowhere Rex fly that isn't served by the regional rail & coach network, so there is a (slower) alternative if they do go belly-up. SA seems to be covered by a couple of bus operators and Queensland look to have Greyhound servicing their towns so it's not as if these communities will be left isolated - their residents might need to plan longer travel times is all.