Rex shutdown a blow to the west
WESTERN towns are appealing for the return of essential air services after regional carrier Rex announced yesterday it was shutting down its Queensland services indefinitely from today.
While the State Government, which subsidises some routes under contracts with Rex, is scrambling to arrange charters, Rex says that with patronage plummeting and cash fast running out, it has been unable to reach a workable solution with the Government.
The shutdown affects some 25 communities from Townsville to Mount Isa and Mornington Island to Thargomindah.
“For it to happen so quickly, it’s distressing,” Hughenden’s Flinders Shire Mayor Jane Mcnamara said.
“We very seriously need our lifeline. It’s a lifeline for essential services,” Cr Mcnamara said.
In a statement to the Australian Stock Exchange, Rex said it had no choice but to declare a force majeure event for its contract with the Queensland Government.
It first requested consideration from the Government on March 19 and had made numerous appeals since then.
Also, while the Federal Government had announced assistance packages, not a single cent had been disbursed and funding was for a minimum essential service of one return weekly flight per route, an approach rejected by the State Government, the airline said.
“With cash fast running out and no immediate prospect of a workable solution from the Queensland State Government, Rex has no choice but to declare a force majeure event for the contract and suspend all services on Queensland regulated routes indefinitely until it has the ability to service the contract in a commercially viable manner,” the airline said.
Affected passengers will have their tickets placed on credit for when services resume.
Transport Minister Mark Bailey said the Government would ensure regional communities maintained access to food, medical supplies and travel for essential workers.
Southeast Queensland public transit agency Translink was coordinating charter flights as a contingency while the Government continued to work with airlines, Mr Bailey said.
“We will not leave regional communities in the lurch,” he said. “We know all commercial operators like Rex are doing it tough and governments at all levels are working together to provide assistance to the aviation sector.”
The Government already subsidised Rex flights in Queensland by more than $10 million a year.
Richmond Shire Mayor John Wharton said he was very concerned.