Rex announces cessation of flights from Adelaide to Kangaroo Island as part of regional route cuts

Regional airline Rex has scrapped its service from Adelaide to Kangaroo Island, just as overseas and interstate visitors are returning to South Australia.

A decision by a regional airline to stop flying to Kangaroo Island has been described by the KI mayor as “not unexpected, but still disappointing”

Former Liberal MP Michael Pengilly said Regional Express (Rex) had been able to only fly from Adelaide to Kingscote during the pandemic because of federal subsidies.

“Aviation is a ruthless industry and Kangaroo Island has seen a number of airlines come and go over the years,” he said.

“There is an opportunity here for another operator to step in, especially now the number of interstate and overseas visitors is starting to increase again.”

Mr Pengilly was commenting on Monday after Rex announced it was cutting services to five destinations – Kangaroo Island, Bathurst, Grafton, Lismore and Ballina.

The airline said flights to the centres would stop on June 30, coinciding with the end of the federal government’s Regional Airline Network Support (RANS) program.

Mr Pengilly said Qantas would continue to service the island with daily flights.

“In fairness to Rex and Qantas, there hasn’t been a lot of business over the past couple of years because of the pandemic,” he said.

“Rex’s only flights were on Mondays and Fridays and most of the locals use the boat on those days,” he said.

“They were handy for professionals like doctors and dentists though who could come over on Monday, do their business and go back the same day or stay the week and head home on Friday.”

Regional Express (Rex) has announced it is cutting out five of its regional routes. Picture: NCA NewsWire / James Gourley

Rex deputy chairman John Sharp said the airline had “faithfully serviced” most of the routes it was axeing for 20 years.

“It is with a really heavy heart that we have to announce the cessation of services in an effort to improve Rex’s financial performance,” he said.

Mr Sharp said alleged “predatory behaviour” by Qantas was a large contributor to Rex’s decision to scrap the services.

The airline had lodged a complaint with the Australian Consumer and Competition Commission, which had been dismissed.

Qantas said the claims made by Rex about anti-competitive behaviour “are just ridiculous”.

“Rex is always looking to blame others when it withdraws from regional routes, but none of its claims stack up to scrutiny,” said a spokeswoman.

“Rex has a monopoly on three of these routes it’s abandoning, so if it can’t make them work, it has no-one else to blame but itself.”

The Qantas spokeswoman said Rex had claimed it did not have funds to cross subsidise routes such as Adelaide to Kingscote.

“But it doesn’t have a problem finding money to invest in more aircraft for its capital city 737 operations,” she said.

“That must be confusing for regional customers given Rex’s tagline is that their heart is in the country.”

Mr Sharp said Rex’s remaining regional network would be closely monitored.

Further adjustments could be announced in the coming months, he said.