Here is how Pearl "lost" the contract (they didn't really lose it at all):
In 2007, the NT government commissioned a report on the state of aerial medical service delivery in the top end. This task was given to John Cornish, who was considered by the NT government to be an "expert" aviation advisor.
In December 2008, he delivered his report. The report contained a number of recommendations, one of which was that the airmed fleet be replaced by younger aircraft, due to the increasing maintenance impact on the service delivery.
Then Minister for Health, Chris Burns, announced to a press conference that "all the recommendations of the Cornish report will be implemented". The government had thus committed itself to a new fleet of aircraft.
On the ABC news that night, it could be seen that the biggest issue of the government announcement was that the Pearl contract was going to be terminated - with a substantial penalty to be paid to Pearl by the NT taxpayer.
This was the angle taken by the ABC journalist - that the contract was being terminated early and the NT government would be making a big penalty payment to Pearl.
The laws relating to government procurement, because of the costs involved, did not allow Pearl to update its own fleet. The only option was to terminate the contract and call for entirely new bids.
ABC news report here:
Henderson plays down Pearl Aviation shortfall - ABC News (Australian Broadcasting Corporation)
The Cornish Report itself can be found here:
http://www.health.nt.gov.au/library/...%20Summary.pdf