Regional Express airline has hit back at the airport peak body over its claims the airlines were gouging regional consumers.
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A few days after the Australian Airports Association's call for an end to airline secrecy to high regional airfares, Rex said AAA was hypocritical as its own members have never disclosed its basis for the "astronomical head taxes they impose which in some cases can amount to over $50 for a one-hour flight".
Rex, the carrier with the largest network of regional and rural routes in Australia, said it was proud of its record on fare affordability with their community fare scheme praised by the Senate inquiry report in June.
Rex added another 23 Queensland regional and rural communities to the Scheme in July, bringing the total to 38 regional communities nationwide.
Rex said that since it started in 2002, its average ticket price has only increased at a rate of 1.2% a year.
The airline said its average net profit per passenger for a 400km flight of around one hour is less than $14 "which is lower than a cab driver's profit for a one-hour ride".
"The AAA would do well to examine itself to see if its members are gouging the local community by their exorbitant airport head taxes," Rex said.
"Many regional airports are reaping in between $1 million to $3 million of head tax revenue when the efficient cost of maintaining a regional airport is about $600,000 per year (which is already more than what 75% of the airports on Rex's network are receiving each year)."
Qantas have not issue a statement on the matter however in July they announced a cap of $800 return for local residents on fares to the nearest capital city.
Meanwhile Virgin Australia said its decision to remove its Wednesday return service between Brisbane and Cloncurry from October 30 is due to low demand.
"While we understand this is disappointing for the residents of Cloncurry, this decision has been made to ensure that our services match market conditions," a Virgin spokesperson said.
"We are proud to connect communities in Northern Queensland to other ports within our domestic and international networks and despite this change in our schedule, we will continue to provide strong competition in Northern Queensland and to the residents of Cloncurry."
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Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
