Rex grounding flights not surprising, says Mildura Airport chair

MILDURA Airport chair Peter O’Donnell says it was not surprising, given the current climate, that Regional Express (Rex) shut down passenger air services.

Rex on Monday said operations would cease from April 6 except in Queensland where the services are underwritten by the Queensland Government.

It said the closures in other states and territories would remain in place unless federal and state governments were willing to underwrite losses.

Mr O’Donnell said the aviation industry had been one of the largest industries impacted by COVID-19.

“I don’t think there’s anything at the moment that would be surprising,” Mr O’Donnell said.

“Anyone in any sort of business, and aviation has probably been hit as hard as anyone, would think that anything is possible right now.

“Obviously, it is extremely difficult for the airline and most businesses aren’t set up for an 80 per cent drop in revenue, so we fully understand the airline.

“Most businesses today are trying to work out how to get through the next few months and be alive at the back end.”

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Mr O’Donnell said it appeared that “reasonable” traveller numbers passed through the Mildura Airport on Monday and other aviation airlines operating out of Mildura had not impacted flight timetables.

“Whether that will change over the coming days – I think we’d be pretty naive to think there’s not going to be some more challenges before we get to the other end,” he said.

Rex Group activities including Ambulance Victoria fixed-wing air ambulance services, charter contracts with mining companies, freight services and pilot training at its pilot academies in Victoria and New South Wales will not to be affected.

Rex deputy chairman John Sharp said the airline was supportive of the strong measures taken by the federal and state governments such as the shutting of state borders and imposing a lockdown within the states as well as discouraging all non-essential travel.

“These measures will definitely reduce the number of infections from COVID-19, prevent the health care system from being overwhelmed and save many lives,” Mr Sharp said.

“However, tragically for the airline industry, this means that we can expect the year-on-year reduction of passenger numbers to nosedive to about 80 per cent from the 60 per cent we are experiencing today.

“There is a tipping point in the airline business beyond which it will no longer be sustainable to operate reduced services.

“We believe that with only 20 per cent of our passenger numbers left we have reached that point and the Rex Group has decided that the quasi suspension of all services at this stage presents the best option to preserve its cash.”

Passengers with bookings after the April 6 must wait until after March 27 before writing in via Rex’s website to put their bookings on credit for a future flight.

Rex said no refunds would be offered as is the standard practice of all airlines during the crisis.