apacau
25th Jul 2003, 09:09
Looks like Rex and Virgin's campaign has paid off to a certain extent. Rex has now indicated it will maintain its CBR-SYD services.
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From ABC news online:
Govt guarantees small airlines piece of travel pie
The Federal Government has announced that up to 10 per cent of all Government travel on the Canberra-Sydney route is to go to the smaller airlines.
REX Airlines has recently withdrawn services on its Canberra-Melbourne route and is warning the Canberra-Sydney service is in doubt if it does not win a greater share of Government travel.
ACT Senator Gary Humphries says departments will be required to report weekly on their efforts to reach the 10 per cent target.
He says an independent assessor will also be appointed to scrutinise travel bookings.
Virgin Blue's John O'Callaghan says the airline welcomes the initiative but the Government could go further.
"We think it's a good first step, we think that the 10 per cent should be much greater, the balance should be closer to what the market share arrangement is: Virgin Blue at the moment has about thirty percent of the Australian domestic market for travel," Mr O'Callaghan said.
"We'd like to see a balance similar to that."
* * *
From ABC news online:
Govt guarantees small airlines piece of travel pie
The Federal Government has announced that up to 10 per cent of all Government travel on the Canberra-Sydney route is to go to the smaller airlines.
REX Airlines has recently withdrawn services on its Canberra-Melbourne route and is warning the Canberra-Sydney service is in doubt if it does not win a greater share of Government travel.
ACT Senator Gary Humphries says departments will be required to report weekly on their efforts to reach the 10 per cent target.
He says an independent assessor will also be appointed to scrutinise travel bookings.
Virgin Blue's John O'Callaghan says the airline welcomes the initiative but the Government could go further.
"We think it's a good first step, we think that the 10 per cent should be much greater, the balance should be closer to what the market share arrangement is: Virgin Blue at the moment has about thirty percent of the Australian domestic market for travel," Mr O'Callaghan said.
"We'd like to see a balance similar to that."