Sorry for the delay in my reply as I am away in the US.
The State Government’s policy reflects a very comprehensive report into air services in WA which said that routes under 50,000 pax should be a sole operator to bring a measure of stability. This however does have shortcomings as under.
1. There is no incentive for the sole opertor to grow the market past 50,000.
2. And this policy may protect the inefficient or those who do not have the interests of the state at heart.
The government has recognized these problems and thus will not just renew a monopoly position of any airline but will put the routes out to tender, probably as a package.
Skywest’s protection on some routes, (which comes up for review later this year) and its expansion on others, has caused concern in Government circles as it goes against national competition policy.
Qantas has already reacted by withdrawing from the FF program but at the same time Skywest is taking the plunge on the “coral coast route” which is bold, and to be applauded. It is the sort of thing the state needs.
Icarus2001, I for one never respected Alan Bond or even Allan Bond…I knew them both too well for that.
Best GT