ATG Downunder pulls tours from Alice Springs, cites flight cuts and costs

ATG Downunder will ‘wind up’ its tour and charter operations in Alice Springs, stating flight cuts and high prices had impacted financial viability. Read what factors went into the decision.

ATG Downunder will pull its tour and charter operations out of Alice Springs in the coming months, citing a reduction in flights and rising costs as key factors behind the decision.

Australian Transit Group senior operation manager Scott Lane said the decision to “wind up” tour and charter operations in the Red Centre was a result of multiple factors, including cuts to flights post Covid-19.

Mr Lane said a number of locally based staff had moved away from Alice Springs during Covid-19 restrictions and it had been difficult to engage and retain local staff.

ATG Downunder has pulled it's tour operations out of Alice Springs, citing difficulties attracting staff to the region and the rising cost and low availability of flights. Picture: supplied.

“A number of our locally based staff had moved out of the region and the costs of flying them in to operate services, and the additional accommodation costs, impacted the financial viability of our continued operations,” he said.

“The reduction in flights to the region post Covid-19 has affected the industry and the announcement of further cutbacks was also a contributing factor in coming to this decision.”

Mr Lane said staff residing outside of the region would continue to have opportunities within its Darwin tour and charter operations, while locally based staff would continue to operate school services for the remainder of the school year.

“This was a very hard decision for the company to make and one that was certainly not made lightly.

“We will continue to operate our school services in the region and are currently evaluating our local resources and operational support required to do so.”

The decision to “wind down” ATG tour operations in Alice Springs follows Qantas announcing significant seat cuts to the region.

Last week, Qantas announced it would be cutting 30,000 seats to its Yulara and Alice Springs services.

The announcement came shortly after the airline posted a record $1.43bn half year profit.

Tourism Central Australia’s chief executive Danial Rochford said the cut “strikes at the heart of liveability in the region”.

It followed direct flights to Perth being axed in 2022, alongside some Adelaide and Brisbane services.