The State Government will permit a second airline to fly the Perth-Geraldton route, inviting applications for a second regular transport permit to the city in the next month.
The full text of an announcement from Planning and Infrastructure Minister Alannah MacTiernan is pasted below
The State Government will open Perth to Geraldton air services to a second operator.
Planning and Infrastructure Minister Alannah MacTiernan said that the approval of an additional Regular Public Transport (RPT) licence would allow a second airline to operate between Perth and Geraldton.
Following the withdrawal of Skippers in April 2006, Skywest was currently the only provider of RPT air services between Perth and Geraldton.
"Passenger numbers on the Perth-Geraldton route warrant the introduction of a second operator," Ms MacTiernan said.
"Between 2004 and 2006, including when two airlines operated, annual passenger numbers grew from 69,000 to 90,000 and this number has since held.
"While this is not enough to justify full deregulation, it is certainly a big enough market for two airlines.
"Further, while there has been an improvement in Geraldton services running to schedule, there are still some stresses on other parts of the coastal network.
"With two airlines servicing this market, some Skywest planes could be freed so the airline could provide better services to other destinations such as Albany, Carnarvon, Esperance and Exmouth."
Geraldton MLA Shane Hill welcomed the announcement and said that strong growth in the Mid-West economy justified better air services.
"With a second airline increasing seat availability, and competition potentially leading to lower prices and improved service standards, I am sure passenger numbers will increase," Mr Hill said.
The Minister said that the Department for Planning and Infrastructure would invite airlines to tender for the second licence in the next month.
"In the past year, new operators have entered the Western Australian intrastate air service market and some of them have recently expressed interest in providing services to Geraldton," she said.
"Current indications suggest that the successful airline could commence services in early 2008."
