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ABC News
ABC News
Business
By Rebecca Nadge

Outback charter companies nosedive as pandemic grounds flights

Charter flights allow services to access some of Australia's most remote areas.

While the fate of Virgin and Qantas makes headlines around the country, smaller aviation companies say they've been forgotten as the COVID-19 travel restrictions leave their businesses reeling.

In WA's far north, several companies operate year round to provide charter services to remote stations and communities that can be several hours or even inaccessible by road.

But travel restrictions have disrupted services, and instead of gearing up for the northern tourism season operators are sitting idle.

Shoal Air owner Steve Irvine has let go of 18 staff, including six new hires who relocated to Kununurra ready for the upcoming tourist season.

He said he had lost about 90 per cent of his business due to the pandemic, and noted that aviation was one of the first industries affected.

"It's wreaked havoc on the industry and the aspirations of many, many young pilots who are trying to progress their careers by starting up in the remote regions, as many do," Mr Irvine said.

He said his company, like many others, did not qualify for federal assistance.

Shoal Air, along with five other charter companies in WA's north, recently submitted a communique to the WA Government requesting contracts, such as deploying essential health services, be shared between the remaining operators.

"If the Government were to distribute that more widely to the broader range of air service providers then we've got a chance of surviving," Mr Irvine said.

"If that doesn't occur then I daresay some will go under."

Call for assistance

The Commonwealth Government has come to the aid of some operators, including AirNorth and Regional Express.

But Aircraft Owners and Pilots Association chief executive Ben Morgan said airline companies at every level around the country were impacted and the focus so far had remained on the larger operators.

"It's been frustrating, incredibly frustrating, to see the Federal Government run to the aid of the bigger boys and has left the thousands of hardworking men and women across the general aviation industry with very little resources," Mr Morgan said.

"Unfortunately, these companies don't have the political clout that Qantas has or Regional Express has in advocating for support.

"We're facing an unprecedented crisis in the general aviation industry, and if we don't see relief in the short term then we are potentially looking at a significant wipe-out of a very large percentage of the overall aviation business economy."

Mr Morgan said incentives such as the JobKeeper allowance were a step in the right direction, but were not enough to counter the high costs associated with owning and maintaining a fleet.

He called for a roundtable discussion between stakeholders at all levels and Deputy Prime Minister and Transport Minister Michael McCormack.

"We think that, to understand that challenge, the Government needs to bring together the industry association, peak bodies and groups," Mr Morgan said.

"What local, state and federal resources are available to help these businesses? What initiatives can we drive as an industry ourselves?"

Targeted subsidies in place

In a statement, a spokesperson for the Department of Infrastructure, Transport, Regional Development and Communications said the Government was committed to supporting the aviation industry through the crisis.

It said the $130 billion JobKeeper package was available to businesses, but there were other measures in place to specifically support aviation.

"The Government appreciates the impacts on general aviation and the waiver of Airservices charges and the rebate of fuel excise from commercial aircraft operations will provide some relief for this industry sector," the spokesman said.

"The Civil Aviation Safety Authority has also taken a series of actions to support and assist in relation to aircraft licensing, registration and examinations including applying a range of exemptions and extensions for industry personnel."

The spokesman said operators could be eligible for a $100 million Regional Airlines Funding Assistance program if they could demonstrate they were regular providers of essential services, such as aero medical services.

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