Federal Government throws Rex Airlines a lifeline to keep regional routes flying during pandemic
After warning its regional flights could cease, Rex Airlines has been thrown a welcome lifeline by the Federal Government in what is a huge win for the state’s country communities.
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Rex Airlines will continue six-weekly return flights to regional South Australia, after last week warning services could stop completely.
The airline has signed a Commonwealth Grant Agreement under the COVID-19 Regional Airline Network Support program announced by Deputy Prime Minister Michael McCormack in late March.
Under the program, regional airline carriers will be provided assistance to maintain a minimal weekly schedule to regional and remote ports.
The program will provide funding for up to six months with an initial approval for six weeks. A Rex spokeswoman said the amount of funding was confidential, but was calculated at underwriting the cost of mounting the services with all revenue collected deducted from the funding.
It means weekly flights to Mount Gambier, Ceduna, Broken Hill, Whyalla, Port Lincoln and Kangaroo Island can continue.
Rex deputy chairman John Sharp said by funding a “barebones” schedule for the next six months, the Federal Government had given all regional airlines a fighting chance to continue on through the coronavirus pandemic.
“Without this intervention, many smaller regional communities would risk not having any air services at all for at least six months,” he said.
“With the Commonwealth assistance packages for regional carriers in place, we are confident that we will be able to help all regional cities who are willing to work in partnership with us to rebuild their regional air services to their full potential over the next two years.”
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Kangaroo Island mayor Michael Pengilly said the news was a step forward.
“More flights to the island helps us to no end,” he said.
District Council of Lower Eyre Peninsula operates SA’s busiest regional airport at Port Lincoln, and chief executive Rod Pearson said it was good news for the region.
“We’re grateful for the support shown to regional airlines from the Commonwealth government,” he said.
Rex has also submitted a revised request for funding to the Federal Government.
If approved, it would mean flights from Adelaide to Coober Pedy and Mildura in Victoria would be reinstated by Rex, and the current weekly flights to SA’s regional towns would be doubled.