Rex Airlines withdraws partnership deal with the Maranoa Regional Council after hearing councillor Cameron O’Neil’s criticism

A proposed partnership between Maranoa Regional Council and Rex Airlines looks to be grounded before leaving the tarmac following a councillor’s criticism during debate on the proposed deal.

Rex Airlines has indicated they may ground a proposed partnership with the Maranoa Regional Council after citing an “attack on its reputation” following a recent council meeting.

In response to an article published on Friday reporting the council’s decision to approve of a partnership deal with the airline, Rex announced they intended to withdraw support for the proposal.

A Rex Airlines spokesperson said the airline was unhappy with comments made by councillor Cameron O’Neil during a meeting debating the proposal.

During debate on the partnership, which promised to deliver Maranoa Region residents with flights to Brisbane costing as little as $169 each way as part of the MRC Residential Fare Scheme, Mr O’Neil said “it will be the rate base of the Maranoa that will ultimately pay for the shortfall of the operating cost of the airport for the next four years”.

The spokesperson for the airline said Rex had “specifically stipulated” the partnership agreement would not be acceptable if council viewed the agreement as a subsidy to Rex.

Maranoa Regional councillor Cameron O'Neil strongly advised against the partnership, citing the high cost to ratepayers and the airport running at a guaranteed loss as the main reasons for his opposition.

“In fact, Rex has made the offer to council to fully underwrite the airport’s revenue and expenses so that precisely there would be no danger of taxpayers’ subsidising the air travellers,” the spokesperson said.

“This was refused by council for reasons not communicated to Rex.

“If anything, it is Rex’s view that it will be subsidising the Maroana community in the next year or more with its low fares.

“Rex finds this attack on its reputation to be both underhanded and unprofessional.

“As such, Rex will withdraw its offer and will no longer offer exceptionally low fares to residents and local businesses. A fully commercial approach will be taken by Rex.”

When contacted, Mayor Tyson Golder he said he was unaware of the airlines’ decision to withdraw the deal and had not been contacted by them regarding this.

Mr O’Neil said it was concerning Rex Airlines left council in the dark and directly contacted the media to announce their decision to ditch the deal.

“I stand by what I said in the council chambers,” Mr O’Neil said.

“My remarks are not about the airline itself … point to me where I said anything about Rex.

“If they’ve (Rex Airlines) got an issue with what I said in a public meeting of council, they can approach me personally.”

Originally published as Rex Airlines withdraws partnership deal with the Maranoa Regional Council after hearing councillor Cameron O’Neil’s criticism