Regional Capitals Australia (RCA) has welcomed an announcement that creditors have voted in support of Air T’s bid to acquire Regional Express.
RCA Acting Chair Cr Kevin Mack said the vote was a positive outcome for regional communities around Australia.
“Regional capitals and the communities in the surrounding regions rely on safe, reliable and affordable air services,” Cr Mack said.
“Rex plays a vital role connecting our regional capitals to the rest of the nation. Its continued operation is essential for the social and economic wellbeing of millions of Australians who depend on air services for work, education, healthcare and business,” he said.
Cr Mack acknowledged the Federal Government’s support for Regional Express over the past 16 months.
“Since Rex entered voluntary administration in July last year, many Australians who live in regional, rural and remote areas have been concerned about the future of air travel,” Cr Mack said.
“The government’s actions to support Rex, including the provision of loans and the regional flight booking guarantee, provided a welcome sense of certainty and stability for air travellers during the administration period.
”We also acknowledge Minister Catherine King’s announcement last week of a new $5 million program for local government and regional and remote airports that supported Rex through the voluntary administration process.
“Air T’s commitment to measures designed to protect regional aviation connectivity is also good news for businesses, locals and visitors who depend on reliable air services,” he said.
Cr Mack led a RCA delegation to Canberra two weeks ago to further its advocacy for regional aviation.
“Around 60 per cent of regional airports operate at a loss so Federal Government support is vital to ensure regional Australia is connected and competitive,” Cr Mack said.
Among its regional aviation priorities, RCA has asked the Federal Government to:
- establish a recurrent federal funding stream for both capital and operational security costs; and
- resolve inequitable security requirements that impose city-level costs on low-risk regional airports.
Last week, RCA welcomed the release of the terms of reference for a Productivity Commission inquiry into the key factors that determine regional airfares, and for a Senate committee inquiry into the state of Australia’s aviation sector and its ability to deliver reliable and affordable services to rural, regional and remote communities.