Fees may force Rex out of Lismore

Lismore Regional Airport staff Bonnie Martin, Michael Limeburner and Tuc Markandu don’t want to see Rex airline services jeopardised.

Regional Express (Rex) management is concerned that fee increases proposed by Sydney Airport will threaten the viability of the independent airline, which services Lismore and Ballina.

On June 24 Sydney Airport Corporation Limited (SACL) submitted a proposal to the Australian Competition and Consumer Commission (ACCC) to increase runway and passenger security charges to regional air services at Sydney Airport by 2.9%. Rex has estimated the cost of parking its planes will increase five fold.

On Tuesday night Lismore City Council passed a unanimous motion to write to SACL, the Federal Minister for Transport and the ACCC.

“If Rex is forced out of Kingsford Smith (Sydney Airport) because of prices and has to fly to Bankstown, it will really disadvantage Lismore,” said Mayor Jenny Dowell.

The full increase will not apply to bigger operations, like Qantas, who were able to negotiate with SACL.

Rex stated in its submission to the ACCC that while the proposed increases would cost it more than $3 million, SACL had actually reduced the fixed passenger charge to QantasLink.

An unnamed source at Rex said they were being squeezed out in favour of the bigger players.

“The problem is capacity. They want extra areas to put increased jet services where Rex is parking, so Rex is having to pay extra fees. Rex is a regional service and the government guaranteed to protect regional services so what we’re seeing is a battle between space available and the expansion of the airport.

“Rex is being targetted on a capacity basis. Macquarie Group (who owns the airport) wants to expand, and Rex has use of a hangar. But once that hangar space goes, they are likely to be able to expand,” the source said. “There are other issues apart from landing fees and landing charges and passenger charges per head... if councils can’t generate an income from their airports obviously they will disappear... Something has to be sorted out between Rex, councils and the government.”

The Lismore City Council motion was put forward by Cr Simon Clough.

“It seems Sydney Airport Corporation is trying a quite devious wedge – they’re putting up aeronautical fees by stealth by increasing parking fees by a factor of five,” Cr Clough said. “The implications of that may make Rex services to Lismore unviable, particularly as Ballina airport is so close and Jetstar and Virgin have services there.

“Because this Council consistently attempts to ensure Lismore retains regional status, we need to make sure charges don’t escalate. It would be really significant to Lismore as a regional centre, with the regional education office, businesses, law through the courts, if we lose the airport, this will be a very significant hole in the economy and tourism.”

In July Page MP Janelle Saffin advocated to locals to write submissions to the ACCC.

“It is vital for regional communities that the right of regional airlines to access Sydney Airport is protected,” Ms Saffin said.

Submissions to the ACCC closed on July 30 and a decision is due to be handed down in September.