Tender for Derby air service trial finalised
News for the Department of Transport
A competitive tender to operate a trial of regulated regular public transport (RPT) air services on the Perth to Derby air route was advertised from August to October 2018, providing significant flexibility to the airline industry to submit innovative bids for the air service.
The robust tender process has now been completed with no tender submissions presenting a value-for-money option for the trial.
Richard Sellers, Director General Department of Transport said in the current fiscal environment none of the submissions offered a cost-effective option to the taxpayer, even with the $1 million subsidy being offered from the State Government.
“The Shire of Derby/West Kimberley will now work with airlines and the resources and tourism sector to look at other opportunities and present any proposals to the State Government,” Mr Sellers said.
“The Department of Transport will continue to regularly engage with and support the Shire, providing feedback and technical guidance on any innovative and collaborative ideas that might be put forward for the air route.
“The $1 million subsidy will remain available should a value-for-money alternative be put forward.”
Derby’s proximity to Broome, along with the discount fares and access to 32 return services between Perth and Broome every week, means any Derby air service needs to be competitive with Broome to be a viable alternative to sustain demand.
There have been no air services between Perth and Derby since 2016, following a decline in resources sector activity which adversely impacted the viability of the air services in the region.
Media contact: email@example.com