Regional Express (Rex) has confirmed it has advised Parkes Shire Council that it proposes to withdraw services from the route.
Rex Managing Director, Geoff Breust, said that Parkes Shire Council was advised of the decision last Friday following meetings of the Rex Board last week.
“Rex has grown the passenger numbers from 13,400 during the period just prior to the collapse of Ansett/Hazelton in 2000/2001 to 31,700 at the end of last FY. Parkes Shire Council annual airport head tax revenue almost doubled during that same period – from $100,000 in 2000/2001 to $190,000 last financial year. In addition Rex is proud to have made the following remarkable achievements for Parkes:
- Full transition from 19 seat combined Metro 23 services to a fully dedicated 34 Seat Saab 340.
- Seat capacity has increased by 400 percent to 62,000 annual seats.
- Peak arrival and departure slots are now dedicated to Parkes.
- Average ticket price (including fuel levy) has decreased by 29 percent in the last four years – current entry level $107. Excluding the fuel levy, the average fares have reduced by more than 40 percent.
- Passenger numbers have grown from 13,000 to almost 32,000.
“Rex has provided Parkes with one of the best airline services in the world for a community of its size. To achieve this, Rex has invested heavily in the service and continues to incur losses on this route. Rex is prepared to continue its considerable financial investments in the spirit of a partnership approach which Rex believes will pay dividends in the long term for all stakeholders.
“Rex is disappointed that despite two rounds of discussions with Council, the latter has decided to proceed with a 15 percent head tax increase in this FY despite a 66 percent rise in head tax revenue in the past FY.
“Given the negative financial returns of the route and the decision of Council, the Board is compelled to instruct management to make plans to withdraw from the route and redeploy the resources to meet its other requirements. The exact timing of the termination will be announced once finalised.”
|