Cut competition to bring down airfare prices: Catania
Cutting competition will lead to cheaper airfares, according to North West Central MLA Vince Catania who has today unveiled a bold plan to end price gouging in regional WA.
Mr Catania said offering one contract for every regional air route in WA, with the caveat that government sets maximum prices, would lead to fairer airfares without hurting the bottom line for carriers.
He said the move would help spread the risk between fully booked routes and regional centres such as Karratha and Hedland, which often have planes half full.
RELATED: Regional airfares appalling: NW airport chief
“I’m proposing we regulate the whole State, that government steps in and says enough is enough, competition doesn’t work because the market is too small,” he said.
“I am calling for the State to be regulated in aviation, to give it to one player, to spread the risk, spread the profit all over over regional WA and for Government then to offer that, put a price cap on airports.
“We subsidise and put in regulations right across transport for Perth metro but when it comes to regional WA we expect the free market can give a better a deal.”
Mr Catania said there was no justification for anyone being charged more than $250 one way for longer regional routes such as Perth to Broome.
He said having a regulated monopoly would be cheaper for travellers, cheaper for mining companies and encourage more families to move to regional WA.
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