Probably for some emotional reason along the lines of being the "big bad boy from the South" or that they are a foreign-owned carrier.
No consideration, I guess, to them being what appears to be a stable business and the fact that they employ many Australians and therefore provide solid jobs to them. I just hope they are reliable and provide a good service, because that is what is needed in FNQ.
It's all very nice to want a local product from a small "family-owned" company - but money talks - and even the local community won't support a local product if it is more expensive than the competition - just take a look around your own home - is everything in it from a local provider where one was available, or was price a factor when purchasing... I'm sure the QLD Government was mindful of this concept when selecting the successful tender.
It will be interesting to see who can make the smaller routes (Aurukun, Pormpuraaw, Kowanyama, etc) work. Hopefully whichever operator has the courage to try it gets well supported by those communities.