Originally Posted by
tail wheel
That is the cost of providing regional and rural air services at reasonable prices, not necessarily a life saver for REX. Rural air services have been subsidised by Federal and State Governments and Australia Post for the last 100 years.
The difference here is not "supporting" regional services, but what appears to be a gift so large in quantity that it exceeds the pre bankruptcy market capitalisation (when the sale of Pelair is adjusted for). So effectively the government is purchasing Rex for significantly more than any other entity would pay for it presently (by a multiple of probably 4 times) yet seemingly getting no equity. How do they get away with that? It appears J. Sharp has some good connections in both major parties as well as the media.
The other things with genuine support is that it mustn't excessively interfere with free market competition - when other regional airlines are on record willing to fill the void how can an 80M donation to EY/ REX be seen as support for regional airline services?
IMO genuine support would be industry wide (regional only) rebates on Airservices charges and Regional Airport fees.