Wagga Council will receive funding to cover money owed by REX. Photo: File.
Wagga, Griffith and Albury councils have been given just under half a million dollars in total by the Federal Government to cover money owed to them by Rex Airlines, raising questions over why taxpayers are continually asked to subsidise regional carriers.
The three Riverina councils run airports in their cities and charge airlines landing and terminal fees to help cover operating costs. However, when Rex went into voluntary administration in 2024, it owed the local government bodies money for charges that went unpaid.
The Albanese Government announced this week it would pay councils and airports owed money by Rex a total of $4.8 million through the Regional and Remote Airport Support Program.
Wagga will receive about $187,000, Griffith $153,000 and Albury $154,000.
Wagga-based aviation advocate Ben Morgan said Riverina ratepayers would appreciate the Federal Government stepping in, but said taxpayers would lose again.
“It casts a long shadow and spotlight over the amount of money the Federal Government spent supporting airlines during COVID,” he said.
“A lot of government money went to Rex, taxpayers got shirked there. Then councils didn’t get paid, so taxpayers got shirked, and taxpayers got shirked again to bail Rex out of administration.”
Mr Morgan questioned why Rex reportedly paid executive bonuses after receiving taxpayer support.
“If Rex could pay their executives bonuses, why couldn’t they afford to pay back their debts to councils?” he asked.
Rex is now owned by Air T, a Nasdaq-listed American aviation holding company, following a government-backed sale completed late last year.
Transport Minister Catherine King said the funding was another example of federal support for regional aviation.
“We committed to and delivered the successful sale of Rex Airlines to keep regional communities connected to the services they need,” she said.
“This financial support is yet another demonstration of our unwavering support for regional and remote aviation.
“We support regional aviation through word and deed, because we understand the essential nature of aviation to communities all over Australia.”
Nevertheless, regional aviation continues to face challenges, with rising prices and reduced services on some routes – such as the recent decision by Qantas to scrap its flights from Wagga and Albury to Melbourne.
Mr Morgan said he would like to see more competition on regional routes to place downward pressure on fares and improve services.
“There are other airlines outside the big three that have been willing to put their hand up to take regional routes, but the Federal Government held the line saying that only Rex could run those routes,” he said.
“We don’t just have to look at Qantas and Rex. There are other airlines that would look at these opportunities if you put equal route subsidies on the table.”
