REX withdraws Portland services
REX has announced they are pulling out of Portland, and launched a scathing attack on the council at the same time.
Correct me if I'm wrong (and I'm sure somebody will), but didn't a similair situation at Wynyard result in Eastern's withdrawal from that port (I'm sure there were other factors as well, but I think passenger head tax was one of the contributing factors).
News Release
10 November 2006
REX WITHDRAWS PORTLAND SERVICES
FOLLOWING STEEP INCREASE IN AIRPORT CHARGES
Australia’s largest independent regional airline, Regional Express (Rex), will cease serving Portland from the end of December 2006.
In making the announcement, Rex Managing Director, Geoff Breust said the airline had decided to withdraw following Glenelg Shire Council’s decision to impose a 30 percent increase in airport passenger head tax without warning in July this year.
While the matter has been the subject of discussions with Council over recent
months, the passenger head tax for Portland has been confirmed at $12.25, a six percent rise and one of the highest passenger charges on our network.
“Councils operating airports have to understand that most regional air services are in an extremely fragile state and those enjoying such a service should play their part in nurturing and protecting it instead of looking at it as a cash generator.
“Rex has been very successful in working in partnership with the regional
communities we serve to grow and improve air services. Such partnerships require a contribution and commitment by both parties so that everyone wins, especially the community. The Melbourne–Portland route is not covering its full operating costs and given Council’s approach, Rex is not prepared to support the route any further.
“On the other hand, Rex has maintained services to the small regional community of West Wyalong in the central west of New South Wales in circumstances where the service is not meeting its operating costs on the basis that the community had contributed through low airport charges. In this case Rex is committed to work as hard as we can with the community to maintain the service.
However, where the community is not willing to work in a spirit of partnership, the airline will take a purely commercial view on whether to maintain the air service.
Rex will cease serving Portland from the last flight on Sunday 31 December 2006.