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The WA government has vowed its regional airfare caps will continue as concerns are raised about prices rising after next year.
The Regional Airfare Zone Cap scheme, which has flown more than 500,000 discounted airfares, was earlier this year extended into June 2026. Its potential expiry has sparked anxiety over possible huge jumps in fares, as reported by the ABC, but WA Transport Minister Rita Saffioti has said it will be renewed.
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“Our Government is incredibly proud of the Regional Capped Airfare Scheme and the positive benefits it’s delivering to regional WA families,” she said in a statement.
“The community can rest assured the scheme will be continuing beyond 30 June 2026.
“As has been outlined previously, we’ve been undertaking a review into the scheme to ensure it is delivering for regional communities, and we look forward to making some important announcements before the end of the year.”
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 fare difference, though exact amounts are commercial in confidence.
Data in 2023 showed that the 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.
An alliance of regional cities earlier this year also lobbied 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.”
