Regional Express (Rex) has announced an increase in fuel surcharge from next week on all routes, following in the footsteps of Virgin and Qantas.
The surcharge on Rex flights will increase $8 (including GST) per sector and come into effect on 20 April 2005.
Rex Managing Director Geoff Breust said, “This is the first time we are imposing a surcharge on our entry level fares which account for a substantial proportion of our sales.
“Although this is the first application of the fuel levy to our deep discount entry level fares, these fares are still some 25% lower than they were two years ago. We had wanted to delay the surcharge for these fares for as long as possible as a service to the bush but unfortunately there is a limit to how much a smaller independent airline can absorb.
"Being relatively small, our fuel is completely unhedged and we do not enjoy the special volume rates given to the larger airlines. These sharp increases in fuel costs therefore impose a much greater toll on us."
Mr. Breust also said the increases in fuel costs were another blow to regional airline services on top of the drought and continued increases in infrastructure costs.
“We are facing increases in costs for the use of airports, air traffic services including air traffic control, rescue and fire fighting and security services. Costs at regional and country airports are also on the rise. These combined cost impacts are so great that services to some regional communities and indeed the viability of some smaller regional airlines could be put at risk.
“These additional costs are going to impact heavily on regional airline services, so much so that we will be asking the Regional Aviation Association of Australia to call on the Government to undertake a detailed analysis of the cost structure facing the industry.
“The Government’s inquiry into regional aviation, the Neville Report, and the Regional Aviation Summit held in Canberra in November last year recommended the Government review the cost pressures affecting the industry. We ask that this occurs without delay.”
Note: The surcharge applies to each flight/sector shown on a ticket or itinerary and effective on tickets issued on or after 20 April 2005.
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