Can both Qantas and Rex survive as a second airline lands in Mount Gambier?

Cheaper fares? New routes? More jobs? A tourism boom? We’ve broken down everything you need to know about the arrival of a second airline in Mount Gambier.

Regional Express does not believe Mount Gambier can sustain two airlines. Picture: Supplied

Regional Express (Rex) had long held the monopoly on Mount Gambier’s skies but that is set to change when Qantas lands in March.

Late last year the Australian airline giant announced the launch of direct flights from South Australia’s second largest city to Adelaide and Melbourne.

While the local tourism industry celebrated the news, it has been met by backlash from competitor Rex.

Pre-COVID the sole commercial operator out of the newly redeveloped Mount Gambier Regional Airport flew 36,000 passengers to Melbourne and 45,000 to Adelaide annually.

A Rex spokesperson said a second airline on these routes would flood the market and risk eliminating the regional airline.

Regional Express does not believe Mount Gambier can sustain two airlines. Picture: NCA NewsWire / Jeremy Piper

“History has shown that the Mount Gambier to Adelaide and Melbourne routes cannot viably sustain two airlines,” they said.

“Qantas is choosing to incur huge losses on these routes, using Commonwealth government subsidies to finance a strategy that will destroy incumbent regional operators.

“Once regional airlines are squeezed out, the loss is permanent and regional and rural communities suffer the consequences.”

But Biddie Shearing, the destination development manager at the Limestone Coast Local Government Association, described Qantas’ launch as a silver lining of the pandemic.

Biddie Shearing destination development manager at Limestone Coast Local Government Association.

Ms Shearing said she expected increased accessibility to the region would bring benefit to the community via an influx of medical professionals, as well as businesspeople seeking new markets and opportunities.

She said the arrival of Qantas would gradually attract more tourists to the Limestone Coast.

“It’s helped a big business like Qantas to have a second or third look at what the options are,” she said.

“It’s helped to put a different lens on domestic routing for their fleet.

“Qantas has such an incredible reach, in terms of database and following and their brand is so big and we’ll now be a part of that. That kind of visibility that we just haven’t had.”

QantasLink CEO John Gissing said the new routes would help the local economy and would promote the region as a destination.

QantasLink Chief Executive John Gissing.

“As the national carrier, we have an important role to play in driving tourism and supporting the industry’s recovery,” said Mr Gissing.

“Before COVID, more than 11 million Australians travelled overseas each year, so these flights will help convert some of these international trips into domestic holidays instead.

“We’re also pleased to be able to offer locals more choice and competitive fares on these routes, most of which have been monopolies for years.”

SERVICES

Qantas will operate five weekly return flights from Mount Gambier to both Melbourne and Adelaide on a 50-seat Q300 turboprop aircraft from Sunday, March 28.

Flying Sunday, Monday, Wednesday, Thursday and Friday, the flights will depart Melbourne at 10am, Mount Gambier for Adelaide at 11am, Adelaide at 12.45pm and Mount Gambier for Melbourne at 2.15pm.

Rex will continue operating eight return flights on its 34-seat Saab 340 to Adelaide, down from 18 pre-COVID.

Its Melbourne service was reduced to two return services in March 2020 but a spokesperson said additional services may be added if demand warrants as customers become more confident travelling interstate.

PRICES

While Qantas offered a special two day price of $125 one-way after the announcement, a one-way flight to either destination will start from $189.

Its competitor's starting point is The Rex Community Fare is priced at $129 to both Adelaide and Melbourne.