Airline agreement reached
Wednesday July 14, 2010
Michael Cox (Cobar Management Pty Ltd), Peter Lloyd (Peak Gold Mines), Cr Lilliane Brady (Cobar Shire Council) and Tony Davis (Endeavor Mine) at a meeting last Friday to unveil an historic agreement to secure Brindabella Airlines as a new Sydney to Cobar air service provider.
Cobar looks set to secure a new passenger air service after a deal was struck between local mines, Cobar Shire Council and Brindabella Airlines.
A special meeting was held last Friday to officially announce to Cobar media that an agreement has been reached where the airline will conduct a four month trial of flights from Sydney to Cobar, to be underwritten by Peak Gold Mines, Cobar Management Pty Ltd, CBH Resources (Endeavor Mine) and Cobar Shire Council.
Under the agreement, if the service runs at a loss for the first four months, the four local stakeholders and Brindabella will share the cost of the loss.
Cobar Shire councillor and CSA Mine financial controller Michael Cox said under the worst case scenario (if none of the seats were booked on any of the flights), each of the five stakeholders would pay approximately $38,000 to cover the cost.
“At the end of the day we do believe we can fill a plane to 60-70 per cent capacity – if we don’t believe that we shouldn’t be talking about having flights anyway,” Cr Cox said at last week’s council finance and policy meeting.
The airline is proposing to fly an 18-seater plane to Cobar five weekday mornings, with a potential flight on either a Friday or Sunday afternoon.
The airline has now lodged an expression of interest with the State Government Department of Transport, with the Civil Aviation Safety Authority (CASA) also required to make a determination before the flights can begin.
Despite continued lobbying from the stakeholders, the State Government has failed to provide any subsidies or financial support to reinstate a passenger airline service to Cobar since Airlink withdrew its service in December 2008.
Cobar Shire Council is also considering waiving part of the landing fees at Cobar Airport for the trial period for Brindabella, with a final decision to be adopted at this month’s ordinary council meeting.
Council has also allocated money in its current budget towards the extension of the runway at Cobar Airport if Brindabella elects to bring a larger plane to Cobar in the future.
Council will also spend $168,000 on improvements to the airport pavement and lighting systems this year.
Cr Brady paid tribute to the mines for working together with council to bring Brindabella to Cobar.
“It is their hard work that has got this off the ground,” she said.
“It has showed that with some unity and pulling together for the same target we can achieve more,” Cr Cox said.
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