Townsville Bulletin

Rex shutdown a blow to the west

- TONY RAGGATT

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.

 ??  ?? LIFELINE CUT: Western towns have lost services operated by regional airline Rex.
LIFELINE CUT: Western towns have lost services operated by regional airline Rex.

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