Tue, Jul 12, 2011
Regional Express Takes Aim At Carbon, Fuel Excise Taxes And
Tightened Security
Australia's Regional Express (Rex) has expressed its strong
disappointment at the recently announced carbon tax levy on
regional air services.
Chris Hine, Rex Chief Operating Officer, said on Monday that
regional air services are facing an avalanche of adverse government
measures of which the carbon tax is the latest. In addition to the
carbon tax those already recently announced by the Federal
Government include:
- Removal of the en-route rebate scheme for regional
airlines.
- Additional fuel excise to increase funding to CASA.
- Increased security screening at regional ports.
"The combined effect of these measures on Rex alone would equate
to at least $6 million (US) per annum." Hine said. "Rex has already
announced in its release of 1 June 2011 that the outcome of these
measures could be the loss of air services to half a dozen marginal
regional ports like Taree and Grafton. I foresee many regional
operators without the financial strength and diversification of the
Rex Group being forced out of business once these take effect after
1 July 2012. Those surviving will have to cut back on marginal
routes in order to remain in business. This will unfortunately mean
that some regional communities will suffer the loss of their
essential air services."
Hine issued a call to Australia's Federal Government to consult
with regional aviation with the hope that it will strongly
reconsider its position on regional airservices "before it is too
late. Given the extremely fragile state of regional aviation in
Australia today, once an operator goes out of business it could
become irreversible as the returns are too slim and uncertain to
attract new entrants."
An article in The Economist indicates that under the
government's plan, which has not yet been enacted into law,
Australian companies will have to begin paying a $24 per tonne tax
on their carbon emissions beginning next July. There is a
corresponding cut in income taxes that will cost the Australian
government more that it raises in carbon taxes in the first four
years. The plan was crafted by Australia's first woman Prime
Minister, Julia Gillard, as part of an agreement to bring the
country's Green party into a coalition government, even though she
had promised no new carbon tax during her campaign. With Greens and
Independents, she claims to have enough votes to pass the plan when
it is introduced in Parliament next year.
Regional Express (Rex) is Australia’s largest independent
regional airline. The Rex Group comprises Regional Express, air
freight and charter operator Pel-Air Aviation and Dubbo-based
regional airline Air Link, as well as the pilot academy Australian
Airline Pilot Academy.
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