“Rex
will stand by all regional communities that have stood by Rex during
this global and national crisis” [Rex Express Holdings Deputy
Chairman and former Nationals MP for Hume, the Hon John Sharp AM,
company media release, 29 April 2020]
Stirring
words in that quote at the top of this post, however the reality was somewhat different for two regional communities on the NSW North Coast - Clarence Valley and Lismore City.
Lismore Airport services a city and population on the banks of the Wilsons River and is a gateway for both business travel and holidaymakers.
While Grafton
Airport
in the Clarence Valley is predominately used by state authorities and
local government.
Having
received financial assistance from Clarence Valley Council
as well as nearly $24 million from the federal government’s $198 million
Regional Airline Network Support Program (RANS), $53.9 million from
the $100 million COVID-19 Regional Airlines Funding Assistance
Program (RAFA), Jobkeeper workforce wage subsidies, and unspecified funding through Australian Airline
Financial Relief Package (AAFRP), Regional
Express Airlines (REX)
suddenly
decided
to cease flights into Grafton Airport on 3 July 2020.
Apparently
it had decided it wished to expand its presence on other
routes
where
it could compete with a pandemic-weakened Qantas Airlines.
It
reversed its decision to abandon Grafton Airport in August 2020 –
promising to operate return services three days a week, on Monday,
Wednesday and Friday on a Sydney-Grafton Lismore route commencing
17 August 2020.
Coincidentally
REX's
re-entry followed
on the heels of negative
publicity and media
reports that Clarence Valley Council had begun looking for another
airline to take its place.
Now
seven
months after its return, the predominately
foreign-owned REX
is withdrawing from its Sydney-Grafton-Lismore route as
of
23 March 2021.
This
time all but admitting that having
milked the federal
government for as much funding as it could, it was again abandoning both Grafton and Lismore just days ahead of the cessation of the emergency regional
airline
funding streams it had previously accessed.
In
a media
release
dated 22 February 2021 REX stated:
Rex
will, from April, commence new services to ports where Virgin
Australia has retreated, leaving Qantas as the sole or dominant
operator. The new services are from Sydney to:
Coffs
Harbour (330,000 passengers pre-COVID)
Port
Macquarie (190,000 passengers pre-COVID)
and
will be available for sale from tomorrow.”
“Other
routes under active consideration where Qantas is the sole or
dominant carrier include:
Sydney
- Tamworth (175,000 passengers pre-COVID),
Perth
- Geraldton (110,000 passengers pre-COVID),
Melbourne
- Devonport (146,000 passengers pre-COVID), and
Sydney
- Canberra (930,000 passengers pre-COVID).”
“We
will be launching services to these cities once a partnership
agreement is concluded with the local councils or airport owners.”
“Our
plans to commence domestic jet services on the Sydney-Melbourne route
on 1 March are still firm barring further border closures.”
In
another media
release
dated 1 March 2021 REX stated:
Adelaide
and the Gold Coast as they have been chosen by Rex to receive
domestic jet services just in time for the Easter rush.
Rex
today announces that it will commence new services between Melbourne
and Adelaide from 31 March, whilst the Gold Coast will receive
services from Melbourne commencing 29 March and from Sydney
commencing 1 April 2021…..
“I
wish to thank both Adelaide Airport and the Gold Coast Airport who
have worked tirelessly with us to make this happen in such a short
time frame.”
One
has to wonder how long the honeymoon will last for Coffs
Harbour,
Port
Macquarie
and Gold
Coast
airports and, whether airport managements realise just how many times
REX will seek financial concessions from local government to keep flying these
routes.
In the Clarence Valley the honeymoon is long over and personally I'm hoping we have finally seen the last of REX.
BACKGROUND
According
to Regional Express Airline’s 2019-20
Annual Report its
largest shareholders are:
MR
KIM HAI LIM
with18,998,346
fully
paid ordinary shares – 17.25%
of
total shares issued
BNP
PARIBAS NOMINEES PTY LTD with
16,234,094
fully
paid ordinary shares – 14.74%
of
total shares issued
THIAN
SOO LEE with
7,722,181
fully
paid ordinary shares – 7.01%
of total shares issued
JOO
CHYE CHUA with
7,454,362
fully
paid ordinary shares – 6.77%
of
total shares issued
MING
YEW SEE TOH & HUI ING TJOA
with
7,454,362
fully
paid ordinary shares – 6.77%
of
total shares issued
MS
HUI LING TJOA with
5,755,513
fully
paid ordinary shares – 5.22%
of
total shares issues.