REGIONAL Express (Rex) will begin to cut its services from the Dubbo to Sydney route from 82 to 73 weekly services from next month, making good its threat to redeploy flights rather than pay security screening fees.
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Rex's general manager of network strategy and sales, Warrick Lodge, said the airline had to respond to the screening charges being imposed by Dubbo airport as it represented a material step-change in operating costs of more than $300,000 on an annualised basis.
He said the airline already paid almost $900,000 in passenger charges in and out of Dubbo and the additional security screening fees would push its service bill at Dubbo to about $1.2 million a year.
He said Dubbo would be losing its 8am Rex flight to Sydney and its 5pm flight from Sydney to Dubbo. Wagga Wagga will pick up these slots, Mr Lodge said.
Mr Lodge said because March 31 and April 1 were part of the Easter weekend-break the airline would keep existing flights in place until the Tuesday.
Dubbo City Council mayor Mathew Dickerson said the announcement was disappointing but not unexpected.
Cr Dickerson believed the decision by Rex to cut the flights was actually a reflection of falling passenger numbers with the airline.
He said his remark was backed by passenger statistics.
"The market share of the Dubbo-Sydney route has changed over recent years," he said.
"In July to February 2010-11, Rex carried 53,842 passengers however in the same period during the 2012-13 financial year it has carried 40,482 passengers - a reduction of 24.8 per cent.
“In the 2010-11 financial year the airline’s market share was 47.0 per cent, however by the end of the 2013 financial year-to-date, Rex’s market share is 37.0 per cent. I therefore view the airline’s reduction in services to be a commercial decision,’’ he said.
“This business decision was presumably based on the data that shows dramatically declining numbers. February 2013 figures - released yesterday - showed 4245 passengers on the route.
“With a load factor less than 40 per cent, this equates to approximately13 people per flight. By comparison, QantasLink carried 8259 passengers. This equates to a load factor of over 80 per cent, which represents an average 41 people per flight,” Dr Dickerson said.
He said the council would continue talks with Regional Express (Rex) on the future of its Dubbo-Sydney service.
Cr Dickerson said he and the council’s director corporate development Ken Rogers met with Rex senior management in Sydney on February 28.
“Since that meeting, Dubbo City Council has made two further attempts to continue discussions with Rex regarding the future of its Dubbo service,’’ he said.
“While it is disappointing Rex has announced today it will redeploy some services from the Sydney to Dubbo route, this is ultimately a commercial decision for Rex.’’
Cr Dickerson said the loss of seats on the Rex service would be offset by QantasLink, with the airline estimating it would add a further 34,840 seats to its service on the Dubbo-Sydney service from April 2013.
“Myself and Mr Rogers will meet with Virgin and JetGo in Brisbane next Wednesday (March 20). Council met with Virgin last year and initiated this follow-up meeting to further discuss potential routes now that security screening systems are in place at Dubbo City Regional Airport. Virgin aircraft require security screening to be in operation at airports they fly from,’’ he said.
Meanwhile, QantasLink announced it would deploy more Bombardier Q400 aircraft on flights between Sydney and Dubbo.
Following yesterday’s decision by Regional Express to withdraw some of its services between Sydney and Dubbo, QantasLink will replace 10 return flights per week, currently flown by the 50-seat Q300 aircraft, with the 74-seat Q400 aircraft from March 25.
