Rex calls for more government assistance

REGIONAL Express (Rex) has called on all levels of governments to assist as the aviation industry enters “a much more dire situation”.

Rex said all measures should be deployed to save Mildura’s essential air service which the company plans to halt from April 6 in the absence of government assistance.

In a letter to Deputy Prime Minister Michael McCormack earlier this month, Rex expressed support of a $715 million relief package announced by the Federal Government.

“While the Federal Government acted quickly in announcing a $715 million relief package in place, the direct benefit to Rex from this package amounts to only $1 million a month in operating cost-savings, which is grossly insufficient to cover the level of losses expected during this crisis,” Rex said in the letter.

“If the airline’s flight schedules are reduced by 80 per cent, then so too will the $715 million of cost assistance be reduced by 80 per cent.”

Rex said airport charges for the company amounted to $2.5 million per month which was why it was critical for local councils and airport owners to provide meaningful assistance.

“Regional air services provide an invaluable contribution to the socio-economic well-being of local communities throughout regional and remote Australia and it should be incumbent on state and local governments to preserve vital air services where travel is for essential reasons,” the company said.

Rex said that as well as a “significant cut” to scheduling, it would not be able to support the ongoing operation of the airline and would suspend all operations with effect from April 6 unless further assistance was released.

“This is why Rex has sought the support of Mildura Airport Limited, so that local communities in regional and remote Australia continue to have a critical regional air service,” it said.

“Airport charges are a significant operating cost for regional airlines, and Rex has written to Mildura Airport Limited to request either a reduction or a full waiver of airport charges.”

Rex network strategy general manager Warrick Lodge said the move would be critical to the survival of the company and with it the longevity of the air services to the Mildura community.

“Should this reduction not be possible, the route may not be commercially viable with the sharp reduction in passenger numbers and we may have to reduce further the already sharply reduced schedule planned for Mildura or be forced to suspend services altogether until such time that Rex is strong enough again to service your community again,” he said.