Member for Roe and Deputy Leader of the Nationals WA Peter Rundle supported this week’s takeover of Regional Express Holdings (Rex) by Air T but is concerned about the massive debt left behind by Rex with local Shires.
The American-based Air T company will become the new owner of Rex Airlines after creditors voted in favour of an arrangement this week to keep the airline’s regional operations in the air. Approval to take ownership may be as early as next month.
In September Mr Rundle called on the Minister for Transport to urgently address the ongoing failures of Rex Airlines’ Esperance service, saying the airline is continually letting down regional families, patients, and businesses.
Mr Rundle said, “Esperance is in my electorate. Families and businesses really do rely on air travel to stay connected. For some it’s the main artery to access health care, education, and extended family. An unreliable air service also impacts local tourism and business expansion.”
In an ABC Radio interview on Wednesday Mr Rundle said, “While the takeover is a plus for regional air travel, the massive bill left with the Shire of Esperance and the City of Albany by Rex Airlines is unacceptable.”
The Shire of Esperance and the Shire of Albany are each owed around $450,000 by Rex Airlines.
Mr Rundle said, “Our councils do a great job with those airports making sure fuel and services are available for the planes, so it’s disappointing and frustrating they have been left with a debt.
This is ratepayers’ money, lost to Rex Airlines, with very little possibility of recompense.”
Mr Rundle also stated in his radio interview, “Ernst & Young, the administrators over the last 18 months, have creamed off somewhere in the order of $25 million so I ask, where is the money owed to the Shire of Esperance and the City of Albany?”
In recent weeks Mr Rundle has also been urging Labor to continue with the Regional Airfare Zone Cap Scheme.
Mr Rundle said, “The Esperance-Perth and the Albany-Perth routes are very popular amongst tourists and convenient for businesspeople and families. I would like to see both routes included in the State Government capped airfares scheme and an expansion of regional air travel across regional WA.
It’s important we get a reliable and consistent service to those current routes to and from Perth; Esperance, Albany, as well as Carnarvon and Monkey Mia, and I know that the Transport Minister has been looking at those options.”
I am excited about the prospect of reliable air travel to and from Esperance but hope that stability flows on to other regional areas as well.”
Mr Rundle finished with, “What the people of Esperance and Albany need is consistency, reliability and minimal travel cancellations. And of course, the debt owed by Rex Airlines. Many people will be watching and hoping in coming weeks that Air T can deliver for our regions!”