Australia’s largest independent regional airline, Regional Express (Rex), will cease serving Portland from the end of December 2006.
In making the announcement, Rex Managing Director, Geoff Breust said the airline had decided to withdraw following Glenelg Shire Council’s decision to impose a massive 30 percent increase in airport passenger head tax without warning in July this year. While the matter has been the subject of discussions with Council over recent months, the passenger head tax for Portland has been confirmed at $12.25, a six percent rise and one of the highest passenger charges on our network.
“We find the decision to be totally excessive given that Council’s revenue from passenger head tax increased by an astronomical 50% in the last 12 months on the back of Rex’s very successful stimulation of the market through very affordable fares and a major investment in upgrading the service from 19 seat Metro to all 34 seat Saab services.
“Councils operating airports have to understand that most regional air services are in an extremely fragile state and those enjoying such a service should play their part in nurturing and protecting it instead of looking at it as a cash generator.
“Rex has been very successful in working in partnership with the regional communities we serve to grow and improve air services. Such partnerships require a contribution and commitment by both parties so that everyone wins, especially the community. The Melbourne–Portland route is not covering its full operating costs and given Council’s approach, Rex is not prepared to support the route any further.
“On the other hand, Rex has maintained services to the small regional community of West Wyalong in the central west of New South Wales in circumstances where the service is not meeting its operating costs on the basis that the community had contributed through low airport charges. In this case Rex is committed to work as hard as we can with the community to maintain the service. However, where the community is not willing to work in a spirit of partnership, the airline will take a purely commercial view on whether to maintain the air service.
Rex will cease serving Portland from the last flight on Sunday 31 December 2006. All customers who have booked and paid for tickets for travel after that date will receive a full refund. Those affected should contact Rex on 13 17 13 or their travel agent with their booking and ticket details.
“On behalf of all at Rex I thank all our customers who have used the services over the years Rex has operated to Portland Airport. I also thank Jane Dunsmuir and her staff who have provided ground handling for Rex at Portland Airport for their service and commitment.
Rex will continue to operate its full schedule of services between Melbourne and Mount Gambier.
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