Tasair Closure Bad News for Residents & Businesses
The Tasmanian Greens said that the closure of Tasair was terrible news for residents and businesses on King Island, and was likely to drive up already sky-high airfares if there was no new entrant into the market.
Greens Member for Braddon Paul O’Halloran MP said that the island relies heavily on air transport to maintain economic, educational and family connections to the Tasmanian mainland.
Mr O’Halloran said the airline’s closure also raises questions about the due diligence conducted when Tasmanian Labor Government loaned Tasair $1.6 million in 2009-2010.
“It is essential for King Island residents that there is competition in the airline market to keep downward pressure on ticket prices, and unfortunately this will leave just one operator servicing the island,” Mr O’Halloran said.
“It already costs as much for someone to go from King Island to the Tasmanian mainland as it does to for someone to fly to Brisbane, which just isn’t sustainable.”
“King Island business and tourism industries continue to suffer when costs to come and go from the island remain non-competitive with other domestic routes.”
“Competitive air transport is essential for maintaining market access for the King Island’s high quality, niche products such as cheese, beef and seafood.”
“Students studying away from home also rely on air transport to maintain regular contact with their family and friends.”
“Priority mechanisms will need to be investigated and implemented to improve competition, service standards and equitable costs to ensure the ongoing viability of the community, its businesses and its tourism industry,” Mr O’Halloran said.
Mr O’Halloran said the closure was distressing news for the company’s employees and their families.
Paul O’Halloran MP Greens Member for Braddon
