Council to cut passenger tax to support regional airline

GRANT District Council will cut the head tax for Regional Express (Rex) to zero at Mount Gambier Regional Airport for six months to support the airline’s presence in the Limestone Coast.

Mayor Richard Sage convened a special council meeting on Monday night to support the six-month zero percent head tax strategy from April 1 and follows Rex’s announcement it would cease all services from Mount Gambier from April 6 unless further state and federal support was offered.

Council will review the strategy after this period and a further 70 to 100pc reduction is foreshadowed for the following three months.

Mr Sage said he was worried about the COVID-19 crisis and hoped council’s strong and decisive support for Rex would support the regional airline.

“The recent $715m relief package is a fantastic start for the aviation industry and I commend the Deputy Prime Minister and the Morrison Government for acting swiftly to provide assistance,” he said.

“However, this situation is changing daily and council, in doing their part to help alleviate financial pressures on the airline, hopes this leadership and support is mirrored where possible.

“The assistance package will provide all airlines across Australia with some cost relief, but this will not be of any benefit if airlines stop flying.”

In a joint statement with the airline, Mayor Sage said council stood with Rex during this time and would do as much as it could to ensure the survival and retention of Rex services.

Regional Express network strategy general manager Warrick Lodge welcomed council’s support.

“Rex is appreciative of the heartfelt support from Grant District Council, during this time where airlines all over the world are fighting for their survival,” Mr Lodge said.

“It will take the support of all levels of government for Rex to continue providing regional air services beyond April 6, 2020.

“This offer of support by Grant District Council is critically important at this time and Rex is continuing to work with state and federal governments in an attempt to keep essential regional air services operating.”

Mr Sage also reassured the community it is business as usual at the Mount Gambier Regional Airport.

“We still have the RFDS and other air services operating,” he said.

“Social distancing barriers and hygiene reminders have been implemented in the terminal building.”

Mr Sage said Mount Gambier Regional Airport upgrade was a fully funded and budgeted project which would continue with its current schedule with a completion date of December 2020.

Council – which owns and operates the airport – will also lobby federal and state governments to support the retention of regional air services for the Limestone Coast.