Qantas in talks for Grafton air service after Rex exits

Over a month after Regional Express withdrew from the Grafton-Lismore route, there are still no commercial air services to the Clarence Valley, with precious little relief in sight.

Air travellers in the Clarence Valley have been left stranded more than a month after Rex withdrew from the region, with an explosive media release in May sparking a public spat with Qantas.

Before Covid-19 hit, the triangulated Grafton-Lismore service averaged almost 20,000 passengers annually, according to Clarence Valley Council, which owns and operates Clarence Valley Regional Airport.

Patronage dropped to 13,570 in 2019-20, prompting the then-Morrison Government to introduce the $198m Regional Airline Network Support (RANS) program designed to help keep regional passengers moving.

Rex’s withdrawal coincided with the expiry of the RANS program on June 30, despite Rex having operated the Grafton-Lismore route for over 20 years while enjoying state and federal government support.

“The Australian Government recognises the importance of accessible commercial air services connecting regional centres,” a spokeswoman for Transport Minister Catherine King said.

“Minister King understands the way the cessation of these routes will affect people’s day to day lives.”

Rex Airlines has no plans to return to the Clarence. Picture: Tim Hunter.

NSW Regional Transport Minister Sam Farraway said the state government had already amply supported Rex.

“Earlier this year, we announced a multimillion-dollar assistance package for Rex Airlines through our Jobs Plus program,” Mr Farraway said.

For all that, Clarence residents remain stranded without commercial flights, and Rex has no immediate plans to revisit the region.

“If we planned on re-entering the region, we wouldn’t have announced the withdrawal, would we?” a Rex spokesman said.

The only options for travellers in Grafton or Lismore are to drive south to Coffs Harbour for a flight, or north to Ballina (where Rex has also withdrawn).

“Qantas’ well-publicised predatory actions on Rex’s regional routes have meant that Rex no longer has the ability to cross subsidise these marginal routes,” Rex deputy chairman John Sharp said in a May press release.

“It is unfortunate that these regional communities are the collateral damage of Qantas’ bullying and heartless behaviour.”

The Australian Competition and Consumer Commission closed an investigation requested by Rex into Qantas’ alleged misuse of market power, finding no anti-competitive behaviour.

There may yet be light at the end of the tunnel for Clarence travellers, with rumblings of Qantas filling the void left by Rex.

“Clarence Valley Council general manager Laura Black has begun negotiations with alternative airlines into the feasibility of a Grafton service,” a council spokesman said.

A spokesman for Qantas confirmed the carrier had been involved in ongoing negotiations and discussions with Clarence Valley Council about entering the region, but would not confirm a commitment to the route.