Regional Express (Rex) has again withdrawn its offer to expand services from Merimbula after accusing Bega Valley Shire Council of having “flip flopped” on the agreement.
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In an email sent to Mayor Kristy McBain on Friday, August 4, Rex’s general manager of network strategy and sales Warrick Lodge said the airline’s board had “lost all confidence” in BVSC.
The withdrawal comes in response to an email sent from Cr Kristy McBain on July 27 that expressed concern about the suggested consumer price index (CPI) not accounting for the trajectory of patronage on Merimbula to Melbourne flights.
A copy of the email from Cr McBain was sent to media by Rex along with its statement.
Mr Lodge said it was the fifth time this year that BVSC had broken a commitment to Rex.
In June BVSC proposed an airport head tax without consulting the airline, for which Cr Kristy McBain consequently apologised.
“Rex accepted the apology and in a spirit of goodwill and partnership, proposed a bold plan to improve services to Merimbula to both Sydney and Melbourne, which would increase seat capacity by 16,000 seats a year across the combined Sydney and Melbourne routes,” Mr Lodge said.
Despite a proposed starting date of September 11, 2017, Mr Lodge said BVSC did not discuss the proposal at its council meeting on June 28 as promised.
“Given the significant amount of work needed to commence the expanded services on the committed date . . . Rex took the mayor’s commitment in good faith and put in place all the plans relating to aircraft, crew and Sydney airport slots to ensure that the commencement date was not compromised,” Mr Lodge said.
“On 27 July 2017 Rex received an email from the mayor advising that the mayor’s support for the proposal needed to be reviewed.”
Cr Kirsty McBain is on annual leave and could not be reached for comment.
BVSC general manager Leanne Barnes said she was initially shocked by Rex’s email after she and transport and utilities director Terry Dodds spoke with Mr Lodge on Tuesday, August 1.
“It’s business as usual as we go through the processes and look at what the scenarios are for Rex,” Ms Barnes said.
“We had been working with them and been trying to put something in place that was good for us, good for them and good for the local community and didn’t short change anyone along the way.
“I don’t know whether they had a board meeting (since Tuesday).”
Ms Barnes said Rex had sent an email outlining its expanded services proposal a week before council’s meeting on June 28, which was deemed too late to assess in time for the meeting.
“I just hope all parties can work together for the best outcomes for the community, for Rex and for council,” she said.
“Clearly that’s our objective and will continue down that path.”
Ms Barnes said Cr Kristy McBain would contact Mr Lodge on Monday, August 7 when she returned from annual leave.
Council will meet on Wednesday, August 9, where the only matter listed on the agenda is a closed session to discuss a code of conduct matter.
