Nexus halts regional flights between Broome, Kununurra and Darwin
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."
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