Rex restores Queensland flights — for now

Rex has backflipped on its threat to suspend all Queensland flights but warns it could still axe them a week from now.

REX says it will restore Queensland Flights but warns the measure may only be temporary. Picture: Supplied

A day after announcing the axing of all Queensland services, Regional Express Airlines has reversed its decision but warned it may well be temporary.

In its latest statement to the ASX, Rex said last minute intervention from the Queensland Department of Transport and Main Roads had convinced the company to resume full services on Wednesday.

However it said a reduced schedule on five regulated routes would take effect from Thursday which it would run in “good faith” for a week.

If a final agreement had not been reached by then, “the total suspension of all of Rex’s services in Queensland may still proceed”, the statement warned.

The Queensland government pays Rex $10m a year to operate five regulated routes, to remote areas such as Mornington Island, Bamaga, Boulia, Birdsville, Windorah and Thargomindah.

Despite the payment, Rex claimed it was still losing money on the services which had experienced drastic falls in passenger numbers due to travel restrictions designed to halt the coronavirus spread.

The airline complained the Queensland government had not provided any additional assistance to help it survive a prolonged crisis.

It’s been a turbulent period for the Singapore-owned operator, which on March 23 threatened to shut down all services in Australia, except for those subsidised by the government in Queensland.

The airline reconsidered when a $298m regional aviation funding package was announced by Deputy Prime Minister Michael McCormack last Saturday.

A statement to the ASX on Tuesday complained that the airline was yet to see one cent of the financial assistance promised by the government, and “cash was fast running out”.

The Queensland government has promised to charter aircraft to deliver essential supplies to remote communities if Rex does go ahead with its threat to suspend services.

A statement from the Western Queensland Alliance of Councils expressed mayors’ disappointment in Rex’s threatened suspension of services.

“Our communities deserve to have the security and peace of mind of knowing that there is a link that can provide essential services during this crisis, just like our mates on the coast and in southeast Queensland,” said the statement.