Rex pulls the pin on all regional Queensland routes

Regional Express airline says it will shut down all Queensland Regular Public Transport services from tomorrow (April 1) as the COVID-19 crisis sees takings plummet. It is calling a force majeure event on its contract with the State, saying the government has failed to make the concessions needed to keep those routes viable. "With cash fast running out and no immediate prospect of a workable solution from the Queensland State Government, Rex has no choice but to declare a Force Majeure event for the contract and suspend all services on Queensland regulated routes indefinitely until it has the ability to service the contract in a commercially viable manner," the company said in a media statement. The Queensland communities affected include: Bamaga, Bedourie, Birdsville, Boulia, Brisbane, Burketown, Cairns, Charleville, Cunnamulla, Doomadgee, Hughenden, Julia Creek, Karumba, Longreach, Mount Isa, Mornington Island, Normanton, Quilpie, Richmond, St George, Thargomindah, Toowoomba (Wellcamp), Townsville, Windorah and Winton. The announcement this morning comes just a day after the airline applauded the Federal Government's announcement of a Regional Aviation Rescue Initiative. Rex services outside Queensland will continue as the airline said it would be able to scale them back to the barebones level that would be covered by the Federal assistance package. "Rex first requested consideration from the Queensland Government on 19 March 2020 and has since then made numerous appeals," it said. "In the meantime, Rex’s financial position and cash flow has seen a further sharp degradation due to the spectacular drop of patronage arising from travel being limited to essential travel only, as well as the border control measures being implemented across Australia." Queensland Transport Minister Mark Bailey said he had asked the head of Translink to reach out to Rex to urgently understand their current position. "We know commercial operators like Rex are doing it tough and governments at all levels are working together to provide assistance to the aviation sector where they can," he said. "The Queensland Government already subsidises Rex flights in Queensland to the value of more than $10 million each year. "We have been discussing options with Rex and other airlines over the past fortnight to keep services running in the face of near zero passenger demand." Mr Bailey said the Queensland Government appreciated the importance of reliable aviation services for remote and regional areas and would coordinate charter flights as required to ensure food, medical supplies and travel for essential workers was maintained until a regular timetabled service could be re-established. Although the Federal Government has announced several assistance packages for airlines, Rex it was yet to see a cent and no concrete details had been forthcoming. "Further, the Federal Government is only funding a minimum essential service of one return weekly flight per route, and this reduced schedule approach was rejected by the Queensland State Government." Rex said affected passengers would have their tickets placed on credit for when services resume.

Rex pulls the pin on all regional Queensland routes

Industry Queensland

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