Latest news with #MichaelMcConachy
West Australian
5 days ago
- Business
- West Australian
Nexus Airlines moves to suspend Kimberley flight route from September 2025
In another blow to air services in the Kimberley, Nexus Airlines has moved to shut down its flights between Broome, Kununurra and Darwin by the end of August. The final flight from Broome to Darwin via Kununurra will depart on the morning of September 1, with Nexus Airlines to give out full refunds to all passengers booked to travel after that flight. Nexus Airlines managing director Michael McConachy cited increased competition from Airnorth, a Northern Territory‑based regional carrier owned by Bristow Helicopters Australia and a subsidiary of the US‑based Bristow Group, for the closure of the route. 'The additional capacity they introduced, and aggressive pricing have made it financially unsustainable to continue on this route and, despite Nexus taking a significant share of the market, ultimately they have deeper pockets and were prepared to continue to fly with unused capacity,' he said. 'It's a difficult business decision, especially as someone who is deeply passionate about tourism and regional growth in the Kimberley, but I remain hopeful we'll return to this route in the near future.' Mr McConachy said it was a 'disappointing' decision to make. 'I'm proud of what we've achieved. Nexus Airlines was created to improve air connectivity across regional WA,' he said. 'Having now lived in the Kimberley for nearly two decades, I witnessed firsthand how poor reliability and high fares contributed to market failure on this route, which was a key motivation in bringing Nexus Airlines to the Kimberley.' Other Nexus routes including between Perth and Geraldton, and between Geraldton, Karratha, Port Hedland and Broome continue to perform well and will remain unaffected by this network change, according to Nexus. Mr McConachy backed recent calls from the Shire of Wyndham-East Kimberley for the State Government to regulate the sector in the region. 'Regulation through a competitive tender process, where one airline is granted exclusive access to a route, can be a vital tool in protecting essential air services,' he said. 'In regions where passenger volumes are too low to support multiple operators, this approach helps ensure communities continue to benefit from dependable, affordable air travel. It's about safeguarding access to tourism, education, health care and local business. 'My hope is that the Kimberley route will be fully regulated. This would allow fares, frequency and service levels to be set and monitored by the State Government, delivering the best outcome for the towns and regions along the route.' It comes after Qantas decided to shutter Jetstar Asia in June — taking Broome's short-lived Singapore flight connection with it, which was the first international flight route for Broome International Airport in years. With the route lasting less than a year before being axed, Broome International Airport chief executive Craig Shaw described the move as 'disappointing' and a blow to the region's aspirations of boosting international tourism and business at the time.
ABC News
6 days ago
- Business
- ABC News
Nexus halts regional flights between Broome, Kununurra and Darwin
An airline linking Western Australia's Kimberley region with Darwin has announced it will halt flights on the route at the end of August. Nexus Airlines is one of two operators flying between the WA towns of Broome and Kununurra, and the Northern Territory capital of Darwin. Its presence in recent years, alongside competitor Airnorth, has helped drive competitive rates for customers, but there are fears that Nexus's back-step from the route will see prices jump. In the remote East Kimberley town of Kununurra — which is closer to Darwin than Broome — regular and affordable flights are a necessity for many residents, businesses and services. But connectivity has historically been a challenge. Nexus managing director Michael McConachy said low passenger numbers were behind the decision to suspend operations between Darwin, Kununurra and Broome, which were not profitable. Mr McConachy acknowledged competition from Airnorth had been commercially challenging. "The additional capacity they introduced and aggressive pricing have made it financially unsustainable to continue on this route and, despite Nexus taking a significant share of the market — ultimately they have deeper pockets." Airnorth and Nexus have been in a price war since the latter entered the market in mid-2023. Having a duopoly resulted in lower prices for residents and visitors, with Airnorth's Kimberley fares dropping significantly, by over a third in many instances. Mr MConachy said having two airlines operating on the route had also increased the overall number of passengers and services, especially during the traditionally quieter wet season. "The capacity has gone up by, in some instances, over about 300 per cent on the route," he said. "Whilst we've seen a definite increase in the number of passengers flying on that route, that's more in the order of sort of 30 to 40 per cent. The airline's announcement has triggered concerns prices for travellers may increase. Mr McConachy said he would like to see the route regulated. On regulated routes, the government steps in to ensure availability and affordability of flights to and from regional locations where demand is marginal. "That's really just to protect those that are flying on the service."
