AAP
$5m airline bail-out
20jun02
THE Federal Government has offered Australiawide Airlines $5 million and access to Kingsford Smith Airport to encourage it to buy regional airlines Kendell and Hazelton.
The two airlines, which service rural and regional areas, have been in administration since September 14 last year when their parent company Ansett collapsed.
Transport Minister John Anderson said the Government had formalised its offer to Australiawide, which is contingent on the company buying Kendell and Hazelton by 25 June.
The Government will hand over a $5 million grant, air navigation charge exemptions for sub-15 tonne aircraft and three years' guaranteed access to slots at Sydney Kingsford Smith airport now held by the two regional airlines.
"Following extensive discussions with administrators and the preferred bidder, Australiawide Airlines, I have now agreed to provide [this] financial and regulatory assistance in the interests of regional Australia, the travelling public and those many hundreds of people still employed with Kendell and Hazelton," he said in a statement.
"I would urge the parties to make the most of this generous offer and conclude the sale as quickly as possible," he said.
Australiawide has reportedly been unable to guarantee the sale will proceed despite the Government's offers.
AAP