ABC is reporting:
https://www.abc.net.au/news/2022-03-31/regional-airfares-cap…
Capped airfares for residents in regional parts of the Western Australia will come into effect from July 1, Premier Mark McGowan has announced. People living within 1,000 kilometres of Perth will pay a maximum of $199 each way, and those in more distant parts of the state will have their flights capped at $299.
The caps only apply to return flights starting in the regions, and fulfil an election promise.
I think this is a great scheme and really help those living in regional WA. Perhaps could be rolled out in other areas of the country.
It is great and has been around for a while, it's been in place up north for a while when Mcgowan subsidised Broome flights to get people flying again.
unfortunately i feel this model is dated and allows airlines to pump their prices again.
Yes i don't have a solution, but i feel government subsidies will quickly result in inflated gross prices. Much like childcare.
I'd look at tax/tariff offsets for operating these routes rather than straight up subsidies/grants