Katter blasts federal government’s Rex Airlines bail out

A Far North MP has called for a government-owned airline to be established with the cost of the federal government’s bail out of Australia’s largest regional carrier documented in Tuesday night’s budget.

Rex Airlines cancelled flights as it entered voluntary administration last July, leaving the fate of the country's third-largest carrier in serious doubt. (Photo by William WEST / AFP)

A Far North MP has called for a government-owned airline to be established with the cost of the federal government’s bail out of Australia’s largest regional carrier documented in Tuesday night’s budget.

Taxpayers have forked out around $130m to keep Rex Airlines flying after the company went bust trying to break into major capital city routes last year.

Member for Kennedy Bob Katter supports a government-owned airline servicing regional Australia. Picture: Brendan Radke

Member for Kennedy Bob Katter said regional and remote Queensland communities were crying out for a carrier committed to providing connectivity to nearby administrative centres.

“The buses and railways in Brisbane are owned and heavily subsidised by the taxpayer,” the maverick MP said.

“How come Brisbane transport can get subsidised and we get punished?

“How does that work? I don’t deny Brisbane their commuter services but if they get it … so should we.”

Flights in-and-out of communities across Cape York, the Torres Strait and northwest should be considered essential services, Mr Katter said.

“And if you want to provide an essential service there’s no way that it can be provided (privately) to people,” he said.

“Subsidisation (of regional and rural airline routes) turns the government into a milking cow for private ownership.”

The money could be better spent elsewhere, the maverick MP said.

“$130m in loans for Rex Airlines is the last thing we need in rural Australia after

decades of overpricing and unreliability,” Mr Katter said.

“This loan was required because Rex, like others before them, arguably abandoned rural Australia for more profitable routes.”

Since going insolvent, the carrier’s administrators, EY, have maintained its regional services, including to more than two dozen airports solely serviced by Rex.

Originally published as Katter blasts federal government’s Rex Airlines bail out