The federal government said it is close to issuing a response almost four months after the Senate Inquiry into regional travel handed down its findings.
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A spokesperson for Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Mark McCormack said the government was currently finalising its response which will be tabled in the "coming days".
"The Government recognises the importance of affordable air travel for regional Australia, and welcomes the Senate Rural and Regional Affairs and Transport References Committee report on the inquiry into the operation, regulation and funding of air route service delivery to rural, regional and remote communities," the spokesperson said.
The two-year long Senate Inquiry handed down its nine recommendations on June 7.
The main first recommendation was for another inquiry on regional air fares, this time by the Productivity Commission.
"The inquiry should, via a detailed economic analysis, investigate the feasibility of increasing operational subsidies and introducing other price control alternatives to address the high cost of regional airfares," the Inquiry said.
"The inquiry should consult with regional communities to determine whether additional routes should be subject to regulation."
The Inquiry also recommended the Productivity Commission expand its terms of reference the economic regulation of airports, to investigate the social and economic impacts of air route supply and airfare pricing on rural, regional and remote Australia.
Other recommendations including looking at the increasing costs of security screening at regional airports, a reviewing the funding of regional and remote aerodrome infrastructure and maintenance, asking COAG to develop a nationally consistent framework for regulated routes across Australia.
While the Inquiry refused to say the airlines were "price gouging" the Airports Association and cheaper fares advocate Hamish Griffin have both accused the major airlines of overcharging.
The Airports Association said the airlines must be compelled to show why a 'discount' return flight from Mount Isa to Brisbane can really cost as much as $800.
"Real solutions for regional Australia can only be found when airlines finally lift the veil of secrecy," they said.
Mr Griffin said regional people simply wanted a fair go.
"No one has been able to explain the gap between a $99 fare between Melbourne and Brisbane and a $1000 fare between Cloncurry and Brisbane," Mr Griffin said.
"The flight crew gets paid the same, the fuel costs are the same, there's no way there should be such a difference."
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Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
