Australian transport minister John Anderson is pressuring the administrators for Hazelton Airlines and Kendell Airlines and prospective buyer Australiawide to close a deal.
If a deal cannot be concluded, Australiawide will lose a A$5 million ($2.8 million) grant from the government's Rapid Route Recovery Scheme. The government's offer is now subject to confirmation from Australiawide by 25 June that its bid has succeeded and that funds can be drawn before 30 June.
The government has already provided A$6.5 million in loans in an effort to keep the two ex-Ansett Airlines subsidiaries flying.
Other inducements to conclude a deal include exemption from en route charges for aircraft with maximum take-off weights below 15,000kg (33,000lb). Australiawide will operate Saab 340s, which are under the weight limit, to compete with Qantas Link's Bombardier Dash 8s.
Australiawide would also be guaranteed access to the two carriers' slots at Sydney Kingsford Smith Airport for at least three years.
Anderson says "I would urge the parties to make the most of this generous offer and conclude a sale as quickly as possible."
Source: Flight International
