****** seeks $7m Govt lifeline - ABC News (Australian Broadcasting Corporation)
[quote'"ABC News Website"]
M@cAir seeks $7m Govt lifeline
Regional airline M@cAir says it may be forced to stop flying unless it gets financial help from the Queensland Government.
The company employs more than 220 people across the state.
M@cAir already gets a $4.7 million subsidy every year from the Government to provide air services to remote locations, including Thargomindah, Bedourie, Birdsville and Winton.
But M@cAir managing director Terry Byrt says more money is needed to clear longstanding debt and ensure the airline can continue trading.
"I have asked the State Government for an ex gratia payment of $7 million," he said.
"We've been there for the long haul up-to-date and we want to continue to be Queensland's regional airline."
Mr Bryt says the Government has offered an extra $3 million a year if minimum service levels are met and he is seeking a meeting with the Premier to ask for more funding.
"We cannot continue to lose money like we're losing on the contracts - there's no business that can go down the path continually losing money," he said.
"We certainly wouldn't be doing the Queensland contract very much longer if we don't get some real support from the Queensland Government."
In a letter to local councils, Mr Byrt says without any financial assistance the company would have no choice but to cease trading.
Transport Minister John Mickel says he does not think the Government is in a position to provide $7 million of extra assistance to M@cAir.
He says the company needs to improve its performance in remote areas and if it cannot contracts should be renegotiated.
"If the company is unable to accept these arrangements then what I genuinely believe is it be in the interests of Queenslanders as a whole that we go back to an open tender," Mr Mickel said.
"I think that is the best way - the best outcome for the community."[/quote]
Bugga.
