GOVERNMENT MUST SUPPORT VIABLE REGIONAL AVIATION SECTOR: McCORMACK
Federal Member for Riverina Michael McCormack is imploring the Albanese Government to pull out all the stops to ensure a sustainable and competitive regional aviation sector.
It comes as Australia’s third-largest airline, Regional Express (Rex), has entered voluntary administration putting at risk around 600 jobs, including 250 jobs directly involved in servicing regional routes.
Whilst Rex has assured regional routes will be maintained through this turbulent time, Mr McCormack has spoken with and written to Prime Minister Anthony Albanese to impress upon him just how important regional aviation providers such as Rex are to regional communities.
“Regional Express entering voluntary administration is extremely concerning, particularly for those who live and work in the regions,” Mr McCormack said.
“I felt compelled to implore the Prime Minister, and his Government, to take whatever steps necessary to ensure Rex remains in the air to help keep the aviation industry competitive for all air travel passengers.
“The Prime Minister told me the Government would work to keep Rex flying, which I welcomed.
“I have also spoken at length with Aviation Minister Catherine King to discuss this crucial issue.
“This is not about picking sides in the aviation space, this is about the imperative need for regional, rural and remote communities to have access to cost-effective, time-efficient and convenient transport options for business, health and leisure purposes.”
Mr McCormack said Rex injected millions of dollars into local economies and provided a vital service for people to conduct business which, in turn, drove more money into the economy by providing better opportunities for local businesses.
“Keeping Rex in the air is important not only to those who rely on its services for business, health and leisure purposes but also to help keep the aviation industry competitive for all regionally based travel passengers,” Mr McCormack said.
“The Federal Government cannot turn a blind eye to this serious red flag being waved – it must look at all options available to ensure regional Australians are not short-changed when it comes to cost-effective, time-efficient and convenient transport options.”
Rex has encountered and survived corporate turbulence before. When it began, pilots and flight attendants were even bringing in homemade food to be served on flights so the fledgling airline could make ends meet.
“COVID-19 brought its own unique challenges and I am proud to say I was Federal Transport Minister at the time and introduced a package of measures which kept Rex in the air and saved jobs, which also allowed the transportation of important equipment around the nation, particularly medical equipment and medicine, but also to ferry defence personnel and medical people who needed to get around the country,” Mr McCormack said.
Rex and its subsidiaries employ around 2,000 staff with many of those in the Riverina and Central West with more than 100 aircraft in its fleet servicing 56 destinations across Australia.
Rex has invested significantly in Wagga Wagga, including a maintenance hangar at the airport and the $28 million Australian Airline Pilot Academy – proof positive of its commitment to the city where it began operations in August 2002 after the September 2001 Ansett collapse.
ENDS