Regional Express [Rex] airline has delivered a major attack on government funding of regional airports.
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In a statement released on Monday the airline slammed the amount of money spent on upgrades which it said was making regional air travel more expensive.
While not naming any particular airport it has called on the federal and state governments to be more vigilant with future funding.
Rex said it had kept its ticket price rises to only 1.1 per cent per year since 2002/03 but was having to meet significant increases in operating costs, particularly those imposed by local government to use the airports.
“The most significant factor contributing to the escalating airport charges has come about by irresponsible and grandiose spending on regional airports to construct excessive facilities that provide no meaningful improvement to the air service,” it said.
Rex said the funding added to operating costs and increased the annual depreciation expense which was then charged back to the airline through increased airport charges.
“Rex calls on the federal and state governments to be discerning in funding to regional airports and play close consideration to the economic justification,” it said.
Orange mayor Reg Kidd said Rex was only presenting one side of the story.
“That is a gross understatement of how airports apply,” he said.
“To be fair and reasonable with it, they are a business.”
Cr Kidd said Orange had not undertaken a major upgrade for some time.
He said he supported Rex’s call for discerning funding.
“I have no trouble with that whatsoever so long as the airline is playing by the same hymn book,” he said.