WA Gov’t doles out $5 million in regional route subsidies

By Andrew Curran.

Two HM Consolidated Group-owned airlines have secured more than AUD5 million (USD3.6 million) in government funding to continue operating scheduled regional passenger flights within Western Australia.

The Government of Western Australia said yesterday that Nexus Airlines had secured AUD3.8 million (USD2.72 million) in funding to maintain its subsidised services, while Aviair will receive AUD1.3 million (USD930,000).

The funding forms part of the 2026–27 state budget and supports flights connecting Kimberley residents and Indigenous communities to healthcare, government and other essential services.

“The government is committed to supporting these critical inter-regional air routes so our regional communities can stay connected to essential services, job opportunities and family,” said Transport Minister Rita Saffioti.

“This investment builds on our commitment to cover rising jet fuel costs for airlines operating on important intra-regional routes and ensures fares under the Regional Airfare Zone Cap Scheme are maintained, so regional residents are not hit with higher costs.”

A win for HM Consolidated Group

HM Consolidated Group is a major tourism and aviation business based in Western Australia’s Kimberley region. Its portfolio includes helicopter operator HeliSpirit, charter and scheduled fixed-wing operator Aviair, and regional commuter and fly-in fly-out carrier Nexus Airlines.

The group is controlled and part-owned by Kimberley-based businessman Michael McConachy through McConachy Aviation Pty Ltd. Other shareholders include Wintergreen Capital Pty Ltd and Australian Business Growth Fund Pty Ltd.

Nexus Airlines operates six DHC-8-Q400 aircraft along the Western Australia coast, linking Broome (BME) with Port Hedland (PHE), Karratha (KTA) and Geraldton (GET) through its inter-regional network.

The airline also operates subsidised scheduled services between Perth (PER) and Geraldton, as well as twice-weekly charter flights between Perth and Kalgoorlie (KGI) that are open to the public.

The state government says the inter-regional network delivers significant time and cost savings by removing the need for regional travellers to route via Perth.

“Flights between Geraldton and the Pilbara have been a gamechanger for our community, supporting fly-in fly-out job opportunities for residents and local businesses,” said Kimberley-based politician Sandra Carr.

Government says it is essential to keep routes operating

Meanwhile, Aviair operates smaller aircraft, including Pilatus PC-12s, Cessna 208B Grand Caravans and Beechcraft King Air B200s, serving smaller and more remote communities.

Subsidised Aviair routes include Derby (DRB)–Broome; Halls Creek (HCQ)–Fitzroy Crossing (FIZ)–Broome; Kununurra (KNX)–Halls Creek–Balgo (BQW); and Kununurra–Kalumburu (UBU).

These services are particularly critical during the wet season, when flooding often disrupts road access and increases isolation for remote communities.

“These measures are ensuring air travel remains affordable and accessible,” Saffioti added.

WA Gov't doubles down on aviation support in 2026

Separately, the state government has also provided additional financial support to regional airlines to maintain capped fares under the Regional Airfare Zone Cap scheme at early-2026 levels, despite rising jet fuel costs.

The scheme, which is separate from the funding announced yesterday, covers 25 routes across Western Australia variously operated by airlines including Qantas, Virgin Australia, Skippers Aviation, Airnorth, Regional Express (Rex) and Nexus Airlines.

Since its introduction, the Western Australian Government has committed AUD7.55 million (USD5.3 million) to sustain the inter-regional network through to the end of June 2027, alongside a similar amount to support Aviair services, which are now secured through to next year.

Photo: AI-Generated.

Contact the writer: andrew@aerosoutjpacific.com