COVID-19 National: Business, Non-Profits – Regional Airline Network Support Package

This program aims to support critical air services to connect regional Australia to freight, medical testing, supplies and essential personnel during the COVID-19 period.

It forms part of the Australian Government's $1 billion Relief and Recovery Fund which will support regions, communities and industry sectors that have been severely affected by the Coronavirus (COVID-19) crisis. The fund was announced as part of the Government’s response to the economic impact of COVID-19.

Eligible applicants can apply for a grant to operate one service per week on each route, for an initial period of up to six weeks. The program will underwrite these services on a shortfall subsidy basis, with the cost offset by remaining commercial revenue from passengers and freight.

The amount of the grant will be the subject of negotiation with the airline based on the range and scope of services to be provided.

A total funding pool of $198 million is available across 2019-20 and 2020-21.

Eligible applicants must:
- Have an Australian Business Number (ABN).
- Be registered for the purposes of GST.
- Have an account with an Australian financial institution.
- Be one of the following entity types:
a) A company incorporated in Australia
b) A company incorporated by guarantee
c) An incorporated trustee on behalf of a trust
d) A partnership
e) A registered charity or not-for-profit organisation
f) An Aboriginal and/or Torres Strait Islander Corporation registered under the Corporations (Aboriginal and /or Torres Strait Islander) Act 2006
- Satisfy the following eligible air service activities criteria:
a) Must have a Regular Public Transport RPT (RPT) Air Operator’s Certificate (AOC) and have been operating public commercial air services to/from regional and/or remote location(s) in accordance with the applicant's RPT AOC pre-COVID19 (February 2020).

Eligible activities are those that support part of the air operator operating domestic RPT air services' pre-COVID19 RPT network serving regional locations, to operate one return service per week on each route, for a period of up to six weeks initially. The application may then also include providing the services for a longer period.

The grant funds must be used to directly support the continuing operation of the airline for eligible air service activities as defined in the Guidelines.

The main assessment criteria include:
- The extent to which the network proposal meets the following requirements:
a) Existing RPT route(s) operated by the airline in January/February 2020.
b) Destinations are regional or remote.
c) Same or similar aircraft type as previously used on each route.
d) Service frequency of no more than one per week.
e) Fares and freight charges similar to pre-COVID19 charges.
f) Alternative route configurations can be put forward to promote efficiencies.
- Contribution the network proposal makes to communities and to supporting regional air service networks.
- The costing of the network proposal.

Please refer to the Guidelines for the complete list of the assessment criteria.

The following are ineligible for funding:
- A Commonwealth, state, territory or local government agency or body (including government business enterprises)
- An individual
- A joint application
- Unincorporated association
- Overseas resident
- Any organisation not included in the eligible applicants.
- Any organisation that does not satisfy the eligible air service activities criteria