Moruya Airport: Rex’s voluntary administration won’t change master plan

A plan designed to increase passenger numbers at a south coast airport will not be affected by a regional airline recently entering administration, a council has claimed.

Eurobodalla Council’s airport manager Sheldon Jones inside Moruya Airport’s terminal. Picture: Eurobodalla Council

Plans to upgrade a south coast airport in a bid to increase passenger numbers will not be affected by regional airline Rex recently entering voluntary administration, according to a regional council.

The Moruya Airport – which exclusively uses Rex for domestic travel to Sydney, Merimbula and Melbourne – is in the midst of creating a master plan, proposing ways to increase passenger numbers after they were hard hit by Covid.

Eurobodalla Council’s airport manager, Sheldon Jones, said yearly passenger numbers peaked at 22,000 just before Covid, before dropping to just 6000.

“Passenger numbers have now returned over 20,000 and have stayed steady despite the economic hardships everyone is facing,” Mr Jones said.

“We predict passenger numbers to steadily grow over the next few years as more people opt for air travel over road trips, and with airlines providing more attractive pricing options.”

Moruya Airport. Picture: Eurobodalla Council

However, Rex’s recent announcement, which resulted in hundreds of flights being cancelled and planes grounded, is not expected to impact the plans, which include a possible new terminal.

Rex did note after the announcement that regional routes, including Moruya, were not affected.

A passenger checks in for a Rex flight at Melbourne's Tullamarine Airport. Picture: William West AFP

However, the company did not reveal if this would be the case in the future.

“Eurobodalla Council understands how vital the Rex Airlines’ Moruya service is to our community,” a Eurobodalla Council spokesman said.

“Given widely reported statements by the administrator last week, we do not foresee any changes to current plans for the airport.

“These plans, including the future design of a larger terminal, will be presented to the next term of councillors for their consideration, understanding a new terminal will only be built if there is a need and if funding is available.”

The Daily Telegraph previously reported EY had been appointed as voluntary administrator to Rex, after months of the airline’s heavy losses from jet operations and challenges with its regional fleet.

Its first move was to permanently ground the Boeing 737 fleet and cancel all major city flights, with Virgin Australia and Qantas agreeing to carry stranded Rex customers for free.

EY partner Sam Freeman said several factors had contributed to Rex’s financial failure, including reduced flying by Saab 340 aircraft used for regional routes, and a lack of passengers on city routes.

He said it was important that travellers continued to book flights on regional services operated by Rex, and he confirmed that the jet operations were finished.

“The fleet has been grounded permanently and I don’t expect that to change,” Mr Freeman said.

Meanwhile, Moruya Airport’s Mr Jones said Eurobodalla Council looked forward to continuing work on the regional airport’s master plan.

He said the airport’s infrastructure required upgrades.

“The terminal, hangar lots and taxiways need to be expanded to fully unlock the airport’s potential and manage increased passenger traffic efficiently,” Mr Jones said.

“Having more hangars creates demand for specialists to establish businesses, increases local employment, and boosts business within our shire.

“We have people hangaring their planes, using them for training, maintenance, sales, or servicing.”

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