Rex Bites Back in Stoush over Fees
By Steve Creedy, The Australian | Aug. 04, 2006
Regional Express (Rex) airlines has hit out at claims by the Australian Airports Association (AAA) that it is brow-beating regional airports to discount or waive landing fees.
Rex managing director Geoff Breust called on the association to withdraw the claims, saying the airline could not let them go unchallenged.
"(AAA chief) Ken Keech should either substantiate such statements with specific evidence or unreservedly withdraw the statement and apologise," Mr Breust said.
"Rex has a policy of working in partnership with 25 regional destinations around our network to develop air services," he said.
"Many of those airports, which are owned and operated by local government bodies, have entered into successful partnerships with Rex and have achieved tremendous growth in passenger numbers and in frequency and quality of service." He said that for every dollar a council contributed in the form of reduced head tax, Rex contributed at least as much so that fares could be reduced.
This resulted in more passenger throughput as well as increased revenue for airport and airline, and was clearly a win for all parties over time. "Rex therefore takes great exception to the remarks by Mr Keech, which are not only defamatory to Rex but I am sure highly offensive to the numerous local councils which have benefited from these arrangements," he said.
But Mr Keech, who was yesterday attending a South Australian divisional meeting of airport operators, stood by his remarks.
He said he had asked those attending the South Australian meeting to indicate whether they had been approached by Rex to significantly lower fees or provide access free of charge. "There were a lot of hands up," he said.
Mr Breust said Mr Keech would do well to examine the conduct of some AAA members, who were all "monopolistic owners of vital infrastructure".
Too many regional airports simply added on a Consumer Price Index rise - or more - on the back of 20 per cent rises in revenue collections.
"In some cases they do not understand how fragile regional aviation is and how critical air services are to the economic and social fibre of their local community," Mr Breust said.