Plans to expand services to Merimbula by Regional Express (Rex) could have hit an air pocket after release of Bega Valley Shire Council’s draft budget which proposes an increase in passenger landing fees.
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The passenger landing fee is applied to each ticket and is currently $11 at Merimbula Airport for regional passenger transport aircraft such as the Rex Saab 340. The proposal to increase the passenger landing fee to $11.50 would apply to passenger movements of about 50,000 from Merimbula.
However Rex has warned council’s lack of communication or consultation over the proposed changes wasn’t a good sign especially in the face of discussions between Rex and council over a possible partnership.
Rex general manager network strategy and sales Warrick Lodge, did not hide his annoyance.
“Regional Express has not been consulted by Bega Valley Shire Council in regards to the proposed increase in airport charges with effect from 1 July, 2017,” Mr Lodge said.
He added that very recently the Rex Board has given approval to expand services to Merimbula subject to the establishment of a suitable partnership agreement between Rex and council.
“It is therefore disappointing that there has been no consultation with Rex as this does not bode well for the establishment of a partnership,” Mr Lodge said.
It is not the first time there have been words between the two organisations. In February Mr Lodge expressed his concerns about council’s expansion plans for Merimbula Airport and cautioned council about any future moves to increase costs to Rex because of the works.
The company would not be drawn on the level of partnership being contemplated and what it might mean for services at Merimbula.
Rex currently operates two to four flights daily between Merimbula and Sydney and at least one flight daily to Melbourne.
But Rex is not the only one complaining about communications relating to airport matters. The News Weekly understands the leases on many buildings at the airport are due to expire on June 30 but businesses have not be told what will happen.
Business owners are hoping to have a longer lease that would provide better financial security and allow owners to take out loans should they wish to invest or expand their businesses.
Council has been asked for a comment.
This does not bode well for the establishment of a partnership.
- Warrick Lodge
