Airline Regional Express (Rex) is yet to indicate if it will pay a bill of more than $200,000 it lost a court battle against Dubbo City Council last week.

And while the NSW Land and Environment Court dismissed the company's case it is yet to make a decision about who pays the costs of the action brought by Rex.

The council claimed victory on Friday, saying the decision confirmed it could conduct security screening services at Dubbo City Regional Airport on a full cost-recovery basis and charge all regular passenger transport operators using the facility.

It had introduced the security screening service required under federal law for larger planes when Qantaslink brought its 74-seat Q400 aircraft to Dubbo in March 2013.

Rex, which uses smaller planes, opposed being charged for the service and urged its passengers to protest the move.

Invoices totalling $242,360 had been sent to Rex with no payments received, staff said in a report to the council in March this year and on Friday it indicated it would review the judgement in full and "consider further actions required".

Rex did not respond on Friday to the Daily Liberal's request for comment about the court's decision and yesterday had still not responded to questioning at the time of going to press.

The Daily Liberal had asked if the company would accept the decision of the court and pay the amounts invoiced to it.

Justice Nicola Pain in her judgement published on the NSW Caselaw website said four grounds of judicial review in the matter were considered.

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They included that the council had no power to impose fee for service on Rex under the Local Government Act, failure to comply with a section of the act in its decision about charging, failure to accord procedural fairness, and irrelevant considerations, unreasonableness and irrationality/ failure to consider relevant considerations.

Rex tendered evidence that formed three exhibits and the council tendered as evidence email correspondence as one exhibit.

Rex also read affidavits of Warrick Lodge, its general manager for network strategy and sales, sworn in June and July last year.

In all four grounds of judicial review considered, the judge ruled Rex was unsuccessful.

She dismissed Rex's summons, but also reserved the question of costs.