On Thursday, Rex launched a blistering attack on council’s plans to increase the length of the runway at Merimbula Airport, warning that any associated increased costs could spell the end of multiple daily services between Merimbula and Sydney, if not the entire service.

In a letter, the general manager of network strategy and sales at Rex, Warrick Lodge, said it was “extremely naive” to hope another carrier would dedicate “precious Sydney Airport slots to fulfill the weaker demand of Merimbula when Merimbula cannot fill 55 per cent of the capacity Rex has dedicated to it”.

He warned that “council can be almost certain that Rex’s services will be severely downgraded, if not withdrawn, if council embarks on this cavalier exercise”.

“It is well and good to receive government and ratepayer funding for airport works. However from experience (including some very recently), this will result in ongoing airport costs spiralling out of control,” Mr Lodge said.

In a response released on Friday, a BVSC spokesperson said the recent statements from Rex Airlines had “come as a surprise to council”, but given the commercial interest at play were “understandable”.

They said the federal and state governments were primarily funding the $7.8million redevelopment works at Merimbula Airport, but all levels of government shared the community’s ambition for improved access to air travel and understood the potential for the regional economy.

“Others too support the infrastructure upgrade, include surrounding local government bodies, local chambers of commerce and regional tourism organisations,” the spokesperson said.

“As the authority responsible for the airport, council has always had a constructive and collegiate relationship with Rex, that will continue.

“We hope that Rex sees a role for themselves in the airport’s future. It is in the community’s interest for council to work with Rex and other airline operators to build a framework around this project that ensures prosperity.”

The spokesperson said recent community feedback concerning the deregulation of the Merimbula to Sydney air route was clear in that people were looking for greater choice and improved access.