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REX withdraws Portland services

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REX withdraws Portland services

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Old 14th Nov 2006, 10:56
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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.
Sue Ridgepipe is offline  
Old 14th Nov 2006, 19:27
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Gawd!

That wont go down well with the locals. Pax numbers went up when they replaced the Metro with the Saab.

Sharp airlines will get a boost! Maybe O'Connors will start visiting?
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Old 14th Nov 2006, 23:45
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Victoria’s largest regional aviation company, Sharp Airlines, has reassured the people of Western Victoria that it will fill the hole left by the cessation of services to Portland from December 31 of Regional Express (Rex).
Managing Director of Sharp Airlines, Malcolm Sharp, said the company has already taken delivery of one Metro III - 19 seat turbo prop aircraft. This aircraft is undergoing refurbishment at Sharp’s Portland maintenance facility. A second aircraft will follow within weeks.

If Sharp’s application to the Civil Aviation Safety Authority (CASA) proceeds smoothly, the company may be able to introduce both these aircraft by as early as mid to late January 2007.
After hearing of Rex’s decision on Friday night, Mr Sharp contacted the office of Federal member for Wannon, David Hawker, seeking assistance to speed up the application with CASA for the introduction of the new aircraft type.

Rest of the media release here
Natit is offline  
Old 15th Nov 2006, 08:43
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How is it when these regionals bring in a whats normally a 2nd or 3rd hand old aircraft to their fleet its trumpeted / advertised as a " new " or in this case as per the media release a " world class " service.

With a Metro 3, world class! Come on!
megle2 is online now  
Old 15th Nov 2006, 09:24
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Well,

One tried and true piece of advice to Glenelg shire council:

"You pay peanuts...."
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Old 15th Nov 2006, 10:59
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good tactics on Rex part - pure and simple.

It is these same councillors who close airports left right and centre for short term real estate (rate) gains.

Let the ignoramii drive on their crap roads instead.
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Old 15th Nov 2006, 22:25
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QFLink pullout of BWT Wynyard was a little different than this the loads and yields were getting worse and worse, as were ZL's. However it was fairly well known that zl were paying a lot less than QF
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