Rex slams 'irresponsible and grandiose' spending on regional airports by governments

[fly_tornado]

Industry feedback for the latest round of security upgrades being forced onto regional airports

 

Rex slams 'irresponsible and grandiose' spending on regional airports by governments

 

• David Fitzsimons
   
   
   
   
  

 

 

 

 

 

Local News

 

 

CONCERN: Rex.

 

Regional Express [Rex] airline has delivered a major attack on government funding of regional airports.

 

In a statement released on Monday the airline slammed the amount of money spent on upgrades which it said was making regional air travel more expensive.

 

While not naming any particular airport it has called on the federal and state governments to be more vigilant with future funding.

 

Rex said it had kept its ticket price rises to only 1.1 per cent per year since 2002/03 but was having to meet significant increases in operating costs, particularly those imposed by local government to use the airports.

 

“The most significant factor contributing to the escalating airport charges has come about by irresponsible and grandiose spending on regional airports to construct excessive facilities that provide no meaningful improvement to the air service,” it said.

 

Rex said the funding added to operating costs and increased the annual depreciation expense which was then charged back to the airline through increased airport charges.

 

“Rex calls on the federal and state governments to be discerning in funding to regional airports and play close consideration to the economic justification,” it said.

 

Orange mayor Reg Kidd said Rex was only presenting one side of the story.

 

“That is a gross understatement of how airports apply,” he said.

 

“To be fair and reasonable with it, they are a business.”

 

Cr Kidd said Orange had not undertaken a major upgrade for some time.

 

He said he supported Rex’s call for discerning funding.

 

“I have no trouble with that whatsoever so long as the airline is playing by the same hymn book,” he said.

 

 

[jetjr]

Orange council spent big on new facilities, especially emergency services facility and have now doubled rent, significant landing fees and extra charges to users like Rex

 

Rex has issues as councils are extending runways to allow larger aircraft in which erodes their position. Once Qantaslink start, fares drop sharply. Problem is councils spend the money on runways and terminals and then new providers DO NOT turn up.

 

Businesses closing and airport is no longer attractive to small aviation. 

 

 

[kasper]

Armidale has just spent $10,000,000 on an airport upgrade to add:

 

- doubled the size of the terminal - never more than 2 RPT aircraft on the ground at any time and never a space problem

 

- baggage screening - not required by law on the current size of aircraft ... not likely to see larger aircraft either

 

- new cafe - old one seemed ok

 

- undercover secure paid parking ... but still has enough open car parking that is currently still free (!!!!)

 

nothing changed airside and I am sure Rex, QantasLink and FlyCorporate are not asking for this.

 

 

[fly_tornado]

I would say that the folks at Armidale were inspired by Wellcamp but its missing a 0

 

 

[red750]

Then there's the full body scanners announced the other day. Typical jackhammer to crack a walnut mentality.

 

 

[Downunder]

Sounds like there is a bit of "airport envy" going around councils..... " Look at me, I've got the biggest...um...airport!"....

 

 

[Birdseye]

Problem is that most of these councils are driven by ego. Once upon a time there were shire clerks, now we have CEOs. My local one decided that they should become a 'city' instead of a shire. Damned if I know on what basis, but I'm sure it makes the useless sods feel warm and happy.

 

 

[Yenn]

Gladstone Qld airport is now so enlarged and upgraded that recreational flyers don't go there.

 

The aero club folded, you can get fuel at a card operated bowser, but it costs a landing fee to get there.

 

The ratepayers paid millions for the upgrades, which were to suit the workforce for building the gas plants on Curtis Island.

 

Before the upgrades we had a full length taxiway, which was completed in about 2000. Now there is no taxiway to either end of the strip.

 

A vast waste of money and not user friendly. I used to refuel there now I refuse to fly there, so they have lost my fuel and oil sales.

 

 

[jetjr]

Trouble is this doesn't effect the council much in the short term

 

 

[bexrbetter]

Personally I think Oz can do with a few more large jet airports as long as they are logically and evenly spaced.

 

it's a big place you know.

 

 

[Thruster88]

Dubbo and others can take a big jet and probably will in the future as slots at Mascot become more expensive.

 

 

[jetjr]

DUbbo is probably one of the few with pax numbers to support this idea

 

others have spent the money and just have 2 saab 340 per day and not even full

 

There is a welcome new routes though, Jetgo, Pelican and Corporate offering N-S travel