If the public purse is involved in this, then that is a very very sad state of affairs and surprising considering Giddings public stand on handouts.
There is no denying the rumour that there are other operators looking at starting up services to KII, Vortex, Sharp Airlines/Airlines of Tasmania, so keeping a service alive shouldn't be a factor here handout wise.
That being said,
if this is above board, then that's great news - some good people get to keep their jobs, and some planes get to keep flying, everyone wins
However - why on earth Rotor-lift would want to get involved in an organisation which on the surface appears to be going down the gurgler and beyond repair is beyond me, this isn't cushy government paid by the hour contract work - this is a competitive industry... let's hope RC knows what he is getting himself into
As to the line that they are going to "give it a crack" well - what is there to actually crack? At the moment, they have a monopoly on the service to King Island, so what is left - go to Flinders? pfff .... good luck ... Sharp's have that tied up quite nicely. Maybe the Canberra run will get a turn again
Interesting times ahead