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The Western Australian government’s Regional Airfare Zone Cap (RAZC) scheme has hit a milestone, with more than 500,000 subsidised seats flown.
The scheme, which has seen a total of 543,747 capped airfares since its implementation in July 2022, was earlier this year extended into June 2026. It has so far seen a commitment of more than $109 million in government funding.
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Run by the WA government in partnership with Airnorth, Nexus, Qantas, Rex, Skippers Aviation and Virgin, RAZC caps regional fares to and from Perth at either $199 or $299. The government pays airlines part of the difference in the fares, though exact amounts are commercial in confidence.
“To have passed the half a million milestone on the number of fares flown shows that the Regional Airfare Zone Cap scheme has delivered a practical and popular solution to the long-running concern of affordable airfares for regional residents,” WA Transport Minister Rita Saffioti said.
“This scheme is saving regional families thousands of dollars and giving people peace of mind that if they need to travel for urgent family or personal reasons, they won’t be stung with high prices.
“Our commitment to the scheme has ensured it continues to provide cost-of-living relief to people who have built a life in the regions, reducing their isolation and giving them the security of year-round capped pricing to visit Perth for personal reasons.”
The announcement comes as an alliance of regional cities lobbies the NSW state government to implement a similar scheme.
In a pre-budget submission, Regional Cities New South Wales (RCNSW), an alliance of 15 regional centres across the state, asked for an RAZC in NSW as well as the provision of funding “on an ongoing basis” for regional airport infrastructure.
“The importance of our regional aviation infrastructure was clear during last month’s flood emergency when roads and highways were cut, isolating many communities,” RCNSW chair councillor Steve Krieg said.
“We have asked the Minns Government to increase its support for regional aviation and provide funding for regional aviation on an on-going basis. This will allow our Regional Cities to invest in and maintain their airports, aerodromes and airstrips.”
Data in 2023 showed that the WA scheme, budgeted for $6.2 million in its first year, cost the state government $17 million in FY23.
According to industry insiders cited by The Australian Financial Review, most of this went to Qantas, which, as indicated by data at the time, operated around 65 per cent of regional flights in WA.
