Rex Airlines’ plan for $129 tickets for Mt Gambier passengers on hold, more negotiation needed, council says
A PROPOSAL by Rex Airlines for $129 tickets for Mt Gambier passengers as part of community fare scheme has failed to get the tick of approval from the airport’s owners.
A PROPOSAL by Rex Airlines for $129 one-way fares for Mt Gambier passengers has failed to win the approval of the regional airport’s owner, with residents to still indirectly wear the cost.
The five-year partnership proposal — a first by Rex in SA — would apply to Adelaide and Melbourne routes and drop prices by $48 from $177 to $129.
Airport owner Grant District Council discussed the proposal in confidence on Monday night. It hinged on the council lowering the airport tax for each passenger from $9.50 to $7.50.
Mayor Richard Sage told The Advertiser the reduction in tax, used for airport maintenance and wages, added up to $160,000 a year at a time when the airport was about to undergo a $9.2 million upgrade.
“The $160,000 has to be factored into it as well as depreciation and ongoing staff costs — we have to make sure we don’t over extend ourselves,” Mr Sage said.
“The Rex proposal is a great one, but like all partnerships you go back to them with negotiations.
“Hopefully, we can get an outcome that we will progress with and that will increase passengers numbers and have a viable airport.”
The council will expand the airport runway, refurbish the terminal, replace lighting and build a new heavy apron, as part of the upgrade hoped to increase tourism to the region.
Mr Sage said the council would discuss the scheme again in a couple of weeks, before it continued negotiations with Rex.
Under the scheme, fares would be offered on at least 25 per cent of seats for sales outside 30 days before the departure date, and for all unsold seats within one day of departure.
In a statement before the meeting, Rex said the partnership had the potential to grow Mt Gambier passenger numbers to the socio-economic benefit of the region.
This would in turn lead to a longer term opportunity to grow the airport’s revenue, it said.
However, Rex said the agreement would be terminated if another carrier provided repeat services to either Adelaide or Melbourne.
It also provided a commitment to reinstate the five return flights a week between Mt Gambier and Adelaide as soon as the current industry-wide pilot shortage eases.
In May, the carrier axed the services and in July warned further services may be cut because of the shortage, with communities most supportive of the airline given top priority.
A spokeswoman at the time said Grant District Council ranked as Rex’s third most challenging council and would be given the priority it deserved.
