Regional Express (Rex) delivered a blow to the tourism recovery of fire-ravaged Kangaroo Island by announcing it is pulling out of the market.
It plans to scrap flights between Adelaide and Kangaroo Island.
It also announced an upcoming suspension of the Sydney to Ballina route.
Rex laid the blame solely at Qantas which it accuses of predatory tactics.
Qantas is ‘dumping excessive capacity’ on the routes aimed at forcing Rex out.
"Unlike Qantas, Rex is not able to continue servicing a money-losing route indefinitely," the airline said in a statement.
It has lodged a complaint with the Australian Competition and Consumer Commission.
"The Rex Board has decided that in light of the sharp downturn experienced in the last six months and the poor economic outlook for the next 12 months, Rex will be exiting the Sydney to Ballina and Adelaide to Kangaroo Island routes."
"Qantas has won this round, but in the longer term the communities are the real losers."
Qantas denied the accusation.
It says Rex has a ‘track record for throwing tantrums when things aren’t going according to their plan.’
"Rex blaming our capacity commitments as a reason for exiting Kangaroo Island after the devastating bushfires is a sad state of affairs."
