Airline ‘breakthrough’
Fare go: High costs barrier to travel
Meeting clears air over Mount Gambier service
THE owner of the Mount Gambier Airport has stood by Regional Express’ track record at the commercial airfield despite rumblings over airfare costs and its own passenger head tax.
Grant District Council representatives were the first officials to address yesterday’s public hearing into regional air services.
Much of the discussion from committee chair Senator Glenn Sterle centred on council’s $9.50 per ticket passenger head tax.
He delved into the issue of whether this financial impost was impacting on the cost of airfares.
Regional Express and the council have been at loggerheads over the passenger head tax for some years.
Speaking to the committee of senators, Grant District Mayor Richard Sage said he believed Rex had been delivering a good service for the regional community.
“Our continued flights into Mount Gambier are second to none – Rex services the community very well,” Mr Sage said.
Explaining the regional airline industry was a “difficult sector”, he said flights were expensive because it was a “numbers game”.
The civic leader said council “appreciated” the services offered by Rex.
He also stood by council’s $9.2m plan to upgrade the airport in a bid to “future proof” the commercial airfield.
Mount Gambier Airport manager Ian Fritsch – who is a former commercial pilot – said Rex serviced the two routes with good frequency.
“I believe that is more important for people than airfares,” Mr Fritsch said.
Adding to the discussions, Senator Sterle said he wanted to gather as much evidence and information as possible.
“I have to ask you about the increasing airfares and the public debate that has been going on,” the senator said.
He questioned the link between the council’s head tax and airfare costs.
Senator Sterle said he found it difficult to understand how reducing the head tax by one or two dollars per ticket would make a major difference to airfares and passenger numbers.
He said there had been a public “war of words” between the two parties over the head tax.
The senator also questioned whether there had been an impact following Rex cutting a number of weekly services.
“Has there been a scramble over seats?” Senator Sterle asked.
In response, Mr Fritsch revealed there had been a 1.2pc decrease in passenger numbers since the cutbacks.
In particular, council revealed the reduced services had impacted on health professionals visiting the region.
Meanwhile, Mr Fritsch said there had been no upward movement in the council’s $9.50 passenger head tax for seven years.
He also foreshadowed council had no plans to lift the head tax despite the multi-million dollar upgrade.
Committee member Senator Rex Patrick also questioned whether the head tax affected passenger numbers.
“Personally, I do not think it is as big as it is made out,” Mr Fritsch said.
He said the biggest drop in passenger numbers was when O’Connor Airlines ceased operating in 2007 after it peaked at 117,000.
“It dropped off immediately from then,” the airport manager said.
Senator Patrick also quizzed the council officials over whether the airport faced hefty security costs under national changes to sweep in new security measures.
Mr Sage revealed the Mount Gambier Airport was exempt because of the size of the Regional Express fleet.
