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Rex chops Armidale
Rex announced on Friday that it had been forced to cut its service between Armidale and Sydney after losing almost $1million over the past 18 months.
Qantas also flies the route and passengers who fly regularly between the Sydney and Armidale have expressed their concern that Qantas will increase prices as a result, as Qantas will now be the only other airline operating on the route.
Rex managing director Geoff Breust said the airline was “very sad” to make the decision after almost two years of service to Armidale and the surrounding shires of Guyra and Uralla.
He said, “We have brought passenger numbers up from 60,000 to 90,000 per year and we have also introduced low fares making air travel affordable for thousands of regional people, but unfortunately the route is too thin to allow two airlines of quality to service it effectively”.
He added, “Despite our best efforts, the company has accumulated losses of $915,000 since we began the service in September 2004.”
Travellers commented that when Rex came on the route, Qantas’ prices came down from over $300 (for a one-way flight).
QantasLink currently offers one-way trips for $123, compared to Rex’s $115, but Qantas Group General Manager Regional Airlines Narendra Kumar would not rule out an airfare increase, saying, “QantasLink currently offers and will continue to offer a competitive range of airfares throughout its network of operations, including the Armidale-Sydney route.”
Rex’ Armidale service will cease from Sunday, July 2 and all passengers holding Rex tickets for travel after 2 July will be offered a full refund or can be re-accommodated on QantasLink flights until October 2 without penalty, subject to seat availability.
Report by The Mole
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