It will be the first public hearing into the inquiry into the operation, regulation and funding of air route service delivery to rural, regional and remote communities since they met in Cloncurry on April 12.

This Tuesday the committee meets at Mount Gambier where representatives of Regional Express (REX) airlines are scheduled to give testimony as well as representatives of local councils, the Mount Gambier chamber of commerce and tourism organisations.

Appearing for REX will be deputy chair John Sharp, as well as Warrick Lodge (General Manager, Network Strategy & Sales) and David Brooksby (National Airports Manager).

In their written submission to the inquiry REX said they were solely focused on the provision of regional air services including flights to many parts of western and North West Queensland – five regulated routes in all.

They also used to fly a non-regulated non-stop service between Mount Isa and Townsville “in response to the persistent pleas from the local community for an air service to Townsville that is affordable and which has a business-friendly schedule”.

“Unfortunately Rex’s Mount Isa to Townsville service was not supported and Rex was forced to exit in early 2015 following significant financial losses being incurred,” the company said.

In January 2018 Rex introduced the $198 “Rex Community Fare” Scheme on the Mount Isa to Cairns route on up to 30% of seats on every direct flight if booked at least 30 days prior to departure and there was no requirement of proof of residency unlike the similar Qantas scheme.

“Mount Isa Airport has partnered with Rex for this initiative, regrettably Cairns Airport was not willing to support this initiative, which was designed to assist the less fortunate,” they said.

Rex said the dynamics of regional air travel inevitably results in higher ticket prices.

“Thin passenger numbers are often less than 40,000 pax a year - The need for day return capabilities for passengers originating from both the regional centre and the capital city,” they said.

“These factors result in extremely high inefficiencies with load factors typically in the 55-60% range when typical jet operators need at least 75% load factor to break even and even over 80% for the low cost carriers. Rex would like to state categorically for the record that, contrary to popular folklore, competition in regional aviation can be particularly detrimental for all the smaller routes of less than 100,000 passengers a year.”