According to regional airline Regional Express (Rex), aviation in Australia will soon collapse unless the Abbott Federal Government makes good on election promises.
The dire warning came from Rex Chief Operating Officer Garry Filmer as he announced a projected profit equal to only 40% of the 2012-13 period.
"The entire aviation industry is financially haemorrhaging right now and approachin gcollapse," he stated. "Qantas' first half profits are expected to be registering a decline of over $450 million from a PBT [profit before tax] of about $140 million in the prior period, to an expected loss of over $300 million. Virgin Australia shows a similar trend with a decline of about $80 million from a PBT of about $25 million, to an expected loss of more than $50 million."
"Regional aviation is even harder hit as the profit margins are slimmer. We have already seen the collapse of two of Australia's oldest regional carriers during this financial year - Aeropelican and Brindabella - and in today's toxic aviation environment, more will likely follow suit. In the past decade there was an average of one regional airline collapsing every year.
"The Abbott Government to date has not made any significant inroads to reversing the devastation inflicted to the economy by the previous government. We implore the Minister for Infrastructure and Regional Development [Deputy Prime Minister Warren Truss] to take immediate and forceful efforts to fulfil his election commitments to regional aviation outlined in the Coalition’s Policy for Aviation, as many regional carriers have little time left before they face the same fate as Brindabella.
"For many parts of regional Australia, this would spell the end of regular air services forever and it would be ironic if it were the Nationals that presided over this outcome."
Rex currently operates 40 SAAB 340s to 35 destinations around Australia, making 1300 flights every week. It also owns charter operator Pel-Air, Dubbo-based AirLink and the Australian Airline Pilot Academy in Wagga Wagga.