The Local Government Association of South Australia (LGASA) has called on the Federal Government to address the financial strain faced by the state’s regional airports.
This comes after the Federal Government’s decision to guarantee regional flight bookings for Rex Airlines, and ahead of the airline’s anticipated creditors’ meeting in September.
Councils operating and managing airports in Ceduna, Coober Pedy, Port Lincoln and Mount Gambier all rely on consistent and reliable air services from Rex Airlines.
LGASA is standing alongside these regional councils calling for immediate Federal Government intervention as the crisis surrounding Rex Airlines’ administration threatens to place a debt burden on regional airports.
LGASA President, Mayor Dean Johnson, said that a subsidy package to address outstanding payments to regional airports must be a high priority.
“Several councils in South Australia play a vital role in operating and maintaining airports and aerodromes, which serve as gateways to their regions,” Mayor Johnson said.
“A financial subsidy package or debt clearance to Rex Group or its creditors must be prioritised by the Federal Government to ensure its ongoing viability.
“Regional air connectivity is not just about travel, it’s a lifeline, ensuring access to essential services and allied health staff, connecting families and supporting local economies.
“Last week’s announcement is positive news for regional communities as passengers can book with a level of confidence, knowing flight bookings are guaranteed.
“However, we are urging the government to recognise the situation faced by regional and remote airports and pull every lever to support the costs associated with their operations.”
While administrators for the airline have supported the continuation of regional and remote operations during the voluntary administration process, reclaiming outstanding expenses related to regional airport fees and charges remains uncertain.
Ahead of the next expected creditors meeting in early September, LGASA will be liaising with the Federal Minister for Regional Development, Kristy McBain, and other stakeholders to highlight the urgency of this issue for South Australia.
Image: DLeng/shutterstock.com
