Regional Express have paid Dubbo City Council more than $380,000 it owed for security screenings, settling a dispute that has played out between the parties for more than 12 months.
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Both Rex and council have confirmed a payment of $382,366.12 was made to council recently.
Dubbo City Council general manager Mark Riley announced the payment in a report to council's Finance and Policy Committee.
"I am pleased to advise that Regional Express Holdings Ltd made payment in respect of outstanding airport security charges during this quarter. The payment made was $382,366.12 and related to screening charges invoiced by Council for the period 20/03/2013 to 21/07/2014," Mr Riley said.
The issue first came to light in June last year when council issued Rex with a bill for security screening between March and May 2013. Rex opposed the charges on the grounds that screening was only mandatory for bigger planes used by Qantaslink at Dubbo City Airport.
They took the issue to the Land and Environment Court of NSW but were ultimately unsuccessful, with Justice Nicola Pain dismissing their case.
A spokesperson for Rex confirmed the airline had made payment but declined to comment further on the issue.
The arrival of funds couldn't have come at a better time for council. It had previously transferred $350,000 to an internally restricted asset as a provision for what it described as a Doubtful Debt by Rex.
They have since had to cover for the loss of more than $320,000 from the Financial Assistance Grant as a result of changes made by the federal government during the May budget.
Rex's payment has freed up the additional $350,000, which will be used to address the shortfall in federal funding.
