Whyalla Council concerned it may lose airline services if security changes at airports go ahead, making it cheaper to fly to Bali
Plane tickets to Whyalla and Port Lincoln may increase by up to $50 if the Federal Government agrees to increase security measures at regional airports – making it cheaper to fly to Bali, a local council says.
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Plane tickets to Whyalla and Port Lincoln may increase by $50 and $20, respectively, if the Federal Government agrees to increase security measures at regional airports.
The Government has proposed airports install body and baggage scanners, with the councils that manage the regional airports to pick up the annual operating bills.
Whyalla Mayor Clare McLaughlin has raised fears the town may lose one of its two air service providers if the changes go ahead.
At the moment the town is serviced by both Qantas and Rex.
“If we don’t have two competing airlines flying regularly to our community, it will have a hugely detrimental effect on our economy,” she said.
Ms McLaughlin said the Government’s offer of grants to pay for security devices, if they are to be implemented, would not cover the estimated $5.6 million needed.
Whyalla Council acting chief executive Kristen Clark said if flight costs to Whyalla increased, it would be cheaper to fly to Bali than from Adelaide to the steel city.
Ms Clark said it would also pass a huge burden onto ratepayers, as they were looking at a six per cent rate increase to cover the cost of security screening.
Rex deputy chairman John Sharp said the company made a profit of $10 per passenger last year, and that could easily be wiped out by increased costs due to the security measures.
“When you put the price (of tickets) up, demand is reduced, which then threatens the viability of services,” he said.
The Government said the security measures stemmed from a disrupted terrorist plot at Sydney Airport, in July 2017, which lead to a review.
Senator Rex Patrick has moved a disallowance against the new regulations, which will be voted on by parliament tomorrow.
“It’s critical for South Australia’s regional airports (that the disallowance motion is successful),” he said.
“The situation for Whyalla is dire, if the regulations are introduced it will devastate the town.
“No one knows what will happen post-COVID, other than the fact the airline industry will be one of the most affected sectors. Now is not the time to increase costs to airlines.”
Labor will oppose the move saying it would have unintended questions.