New Government Air Carrier Services Contract Saves Victoria Big Money
The Victorian Government will save more than $13 million in taxpayer funds over the next five years after negotiating new contracts for domestic and international air travel.
The new Air Carrier Services contract expands the number of airlines which all eleven Victorian Government Departments and Victoria Police need to use for air travel providing greater competition and significant reductions in the cost of air fares.
Finance Minister Tim Holding said instead of individual departments trying to negotiate with airlines, a tender for air services across the whole of Government has meant better prices and better service.
“In recent years the Brumby Government has taken an aggressive approach to achieving savings,” Mr Holding said.
“Increasing the number of airlines which public servants can use has meant we are getting better value for money air fares while at the same time getting increased flight availability, which improves staff efficiency.”
“These savings release money for spending on key Government priorities such as recruiting police, teachers and nurses.”
Mr Holding said other statutory authorities could opt-in to the new contract, which will mean a reduction in costs for these Government organizations.
The Victorian Government’s new domestic air travel panel is made up of Jetstar Airways, Qantas Airways, Virgin Blue and Regional Express.
The Victorian Government’s new international air travel panel is made up of Air New Zealand, Cathay Pacific, Emirates Airline, Etihad Airways, Qantas Airways, Singapore Airlines and V Australia.
Mr Holding said the new Air Carrier Services contract builds on the other initiatives where collective purchasing contracts are providing greater value for taxpayers.
“State purchasing contracts deliver better value for money for Victorian taxpayers.
“In budgets since 2007/08 our accumulated savings across Government have exceeded more than $800 million.
“This has come from areas such as cutting costs on car fleets, advertising, consultancies and Whole of Government purchasing on items like fuel, printing and electricity.”
Topics: 2010, Air Carrier Services contract, air fare, Air New Zealand, airlines, Australia, Brumby Labor Government, business, Cathay Pacific, cost savings, domestic air travel, economic development, economic growth, economic recovery, Economy, Emirates Airline, Etihad Airways, Governance, government, international air travel, Jetstar Airways, moniter, monitor, news, Qantas Airways, Regional Express, Singapore Airlines, society, taxpayer funds, V Australia, Victoria, Victoria Police, Virgin Blue
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