Red Bull Air Race blow for Perth

In a blow to Western Australia's flagship tourism event, the Red Bull Air Race has been cancelled worldwide.

The organising body has axed all stages of the global event for 2011, citing new safety measures and "headquarters" restructure.

The chairwoman of Tourism WA, Kate Lamont, said she believes the event has been cancelled due to the global financial crisis.

The race suffered its first ever crash in Perth this year, when Brazilian pilot Adilson Kindlemann plunged into the Swan River during a practice run.

The race was first held in Perth in 2006. This year's race saw more than 300,000 spectators during the two-day event.

In 2010 races were held in major cities worldwide, including New York, Rio de Janeiro, Barcelona, Hungary and Abu Dhabi, but the final event of the season, in Portugal on September 4 and 5, has been cancelled after organisers said they failed to reach an agreement with Tourism Portugal.