Wally
Apparently they undercut the RFDS by such a large margin it made it impossible for the RFDS to even get close. So basically if the RFDS can't do it at that price given their sector knowledge and economy of scale advantage then I'm afraid pelair have no hope. The big difference between the two is that the AAV got far more than they paid for with the RFDS. The RFDS does certain things and always with patient care at the forefront, who pays at the end of the day is not so important.
I think the RFDS went after the contract more for the territory and economy of scale rather than screwing the costs down so low that the level of service suffers. I doubt the RFDS would get it back by a handshake. If the pelair thing goes toes up they'll either get more money so the government can save face or it will go back to tender with an interim operator as was the case in the NT.
Time will tell!
SN