Rex decision a blow to the community
18 May 2023
Whyalla Mayor Phill Stone has responded to Rex Airlines’ announcement that it will exit its operations from Whyalla, expressing his extreme disappointment in the decision.
“This is a huge blow for our community,” Mayor Stone said.
“For Rex to use Council as a scapegoat for this decision and suggest it was ‘underhanded’ is quite frankly unfair, as we have been having ongoing discussions regarding this situation for some time.
“We will now have to work extensively with the broader airline industry to explore options to help minimise the impact of this decision, while ensuring our airport can play a key role in Whyalla underpinning the hydrogen and renewable energy transition for Australia, Asia and beyond.”
Mayor Stone said Whyalla City Council had been forced to pass on the cost of airport security screening to all airline operators as a result of the Federal Government ceasing its funding, effective 1 July 2023.
He said Council was not able to absorb this additional cost and did not believe it was fair to pass it on to all Whyalla ratepayers, meaning the most appropriate option was to take the Federal Government’s direction and pass it on to the airlines.
“Regardless of individual carriers’ requirements, the Whyalla Airport has now become a screened facility to meet Federal aviation conditions,” Mayor Stone said.
“This means all airlines utilising the facility will need to cover the cost of screening, particularly given passengers cannot be segregated from screening based on their carrier.
“Only passing the cost on to Qantas would create an unfair playing field due to it resulting in about $80 extra per departing passenger for Qantas, while Rex would incur no additional costs.”
Mayor Stone said the ultimate responsibility for the situation rested with the Federal Government, which has let the Whyalla community down.
“Unfortunately, our extensive lobbying to the relevant Federal ministers has fallen on deaf ears,” he said.
“This extra cost will not only be to the detriment of the community, but also the Federal and State Governments’ major development plans for our city, with Treasurer Jim Chalmers only recently mentioning Whyalla’s importance to Australia’s green hydrogen future during his budget speech.
“If the Federal Government genuinely values the security and future prosperity of Whyalla and the region, it’s critical they reconsider this decision. The disproportionate financial and service level impacts on regional communities arising from security screening is incredibly disappointing, so we will continue to lobby them to see the funding reinstated.”