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Rex and Melbourne Airport Reach Agreement
Thursday, October 26, 2006

Regional Express (Rex) announced that it has come to an agreement with Melbourne Airport over inbound security screening arrangements at Melbourne Airport.

The issue arose when as a result of Melbourne Airport’s desire to facilitate access by Virgin Blue to boarding gates on the southern concourse (Concourse F) of the domestic terminal T3, Rex was required to move its operations from Gate 11 to Gate 14. As a result, Rex passengers arriving at Melbourne Airport from regional centres would be screened on entry into the terminal.

This additional screening results in increased screening charges for Rex. Both parties embarked on the dispute resolution arrangements in accordance with the Terminal Licence Agreement to come to a mutually acceptable principle of cost allocation.

The matter has now been settled via these procedures.

Rex Managing Director, Geoff Breust said that the outcome was a further blow to regional aviation as there were further cost increases for Rex.

“However we recognise that Melbourne Airport has limited flexibility on this matter and we are very appreciative that they have done their best to mitigate the impact. While details of the agreement are confidential to the parties, Rex has decided to absorb the increases so as not to place further burden on the regional traveller,” Mr Breust added.