Regional Express calls for government help

Regional Express calls for government help
By admin


Regional airline operator Regional Express Group (Rex) says the regional aviation sector needs government help to save it from collapse.

"The Abbott government needs to take immediate steps to fulfil their election promises to regional aviation outlined in the coalition's policy for aviation before the irreversible collapse of regional aviation occurs," Rex chief operating officer Garry Filmer said on Wednesday.

Rex on Wednesday reported a net profit of $3.6 million for the six months to December 31, down 60 per cent on its $9 million result for the same time last year.

Profit before tax for the first half was $5 million, down 59.8 per cent on its previous $12.5 million before-tax result.

The company blamed the fall on the continuing weak Australian economy.

Mr Filmer said both total and passenger revenue fell, fuel costs were up, and the carbon tax also had cost the airline money.

Rex earlier in February flagged that its first half before-tax profit would be about 60 per cent below last year's because business-related travel had plummeted.

Regional Express did not declare an interim dividend.

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