Opposition calls for review of capped airfares program as Karratha flights boom

The state opposition says the popular capped regional airfares scheme needs to be reviewed as questions emerge over its integrity after it was revealed the number of taxpayer-subsidised flights to FIFO hub Karratha was nearly double the next town.

The Australian Financial Review reported concerns that the program – which has ballooned in cost from $19 million to more than $100 million over three years – may allow passengers to travel regionally for business rather than privately, as was originally intended.

The program has subsidies about 400,000 tickets.Credit: Nine News Perth.

Opposition leader Shane Love said while the Nationals supported the program, questions must be answered about its operation and integrity.

“Karratha’s uptake of the scheme far exceeds any other regional destination, even much-larger communities like Kalgoorlie, and the Cook Labor Government must explain why,” he’said.

“Concerns around how airlines monitor and administer these discounts, which are intended for personal travel for regional residents only, must also be addressed.

“Given the significant taxpayer funds being spent on the scheme it would be prudent for the Transport Minister to review the scheme to ensure it is operating as intended, and to address any anomalies.”

Liberal leader Libby Mettam lashed the program as “another transport blowout” and said it needed greater transparency.

“The Regional Airfare Zone Cap is important for regional communities, but taxpayers shouldn’t be subsidising flights for resources companies,” she said.

“Western Australians deserve a government that respects their money, which is exactly why need to see increased transparency around how taxpayers’ money is being spent.”

Airfares are capped at $299 for trips greater than 1000 kilometres from Perth and $199 under that, but they are only available to regional residents, who must also book a return flight.

According to government figures provided to the AFR, 102,471 Karratha airfares have been subsidised while the next nearest town, Port Hedland, has had 53,838.

Karratha’s population sits around 24,000 while Port Hedland is home to about 17,000.

Airlines police the policy individually, but most only require a declaration that the passenger booking is a resident.

WAtoday made it to the payment page of both Qantas and Nexus’ websites by declaring the flight booking was for a regional passenger.

Premier Roger Cook said he had received no evidence to suggest the scheme was being used for business purposes.

“We do know that the people in regional Western Australia greatly value the regional capped airfare scheme because it allows them to travel to Perth at affordable rates,” he said.

“We’re going to just signal that we, in the future, will also be working with our airline partners to make sure that they are doing the right thing by the customers as well.”

Cook said the program has been a huge success.

“Whenever I travel to the regions, people in those communities are always saying to me just how good that particular regional capped airfare scheme actually is,” he said.

“It provides them with the opportunity to come to Perth on a regular basis, and it’s not just obviously, for social opportunities or family opportunities sometimes it’s to augment their health appointments or other reasons that they have to come into the city.”

The program was first announced in 2022 for a cost of $19 million.

Nearly 400,000 tickets had been subsidised under the scheme so far for a cost of $84 million.

In August, the government revealed the scheme would cost $105 million and would be reviewed in mid-2025.

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