Interesting development, maybe Pel-Air have woken up that aero medical isn't as good as they thought.
TASMANIA'S Royal Flying Doctor Service is awaiting news on its future, as a commercial airline that intended to compete for its aero-medical contract announced it had pulled out. The successful tenderer for the state's air ambulance service is due to be announced by the state government within days, but the Royal Flying Doctor Service has not been told whether its deal will be renewed.
When tenders were called in July, Regional Express subsidiary Pel-Air confirmed it would compete against the RFDS, having already won the Ambulance Victoria contract.
But a spokeswoman said yesterday that it ultimately decided not to submit a tender.
The RFDS has run the service from Launceston Airport since 1997 and its $28 million contract expires in January.
The state government decided to go to tender in March, arguing the need to ensure value for taxpayers' money.
Foundation RFDS member and past Tasmanian president Lindsay Millar said he doubted another operator could provide a better service.
"As for the price, a commercial operator is tendering to make a profit, and where does the profit go? Into their pocket," he said.
"Since 1997 we have contributed $8.2 million to the Tasmanian health system."
The tender process means that even if the RFDS is successful, it would be ineligible for Commonwealth grants and could not use donor funds.
It would also lose the right to display its logo, with a government spokesman confirming the new aircraft bought as part of the contract will carry Ambulance Tasmania livery.
"This was also a requirement under the previous tender but it was waived during negotiations as the aircraft being supplied already carried livery," he said. Mr Millar said winning the contract would not only secure the use of the aircraft, but a $600,000 aviation training simulator. "Without the tender we'd still have our clinic services, the rural women's GP program and our medical scholarships, but the aviation side is the major part."