Five days out from Christmas, Rex will pull the plug on Air Link flights linking Dubbo to Bourke, Cobar, Coonamble, Lightning Ridge and Walgett as well as its Mudgee to Sydney run.

Rex managing director Jim Davis said spiralling costs, increasing regulatory requirements along with a shortage of pilots and engineers were factors in the decision.

The company is also acting on the Federal Government’s advice to prepare for the termination of the “en-route rebate”, established to underpin remote air services across Australia.

Marginal routes would not be commercially viable without the incentive, Rex says.

Mr Davis’ announcement late yesterday drew instant condemnation from State MP for Dubbo Dawn Fardell, Federal MP for Parkes Mark Coulton and State MP for Barwon Kevin Humphries.

Mrs Fardell said she held “grave concern” for health services in western NSW.

“Rex’s decision is just one more blow for smaller communities battling the tyranny of distance, dramatically increasing the cost of flying in medical staff if plane flights now have to be chartered to ensure crucial medical services are maintained,” she said.

Mrs Fardell said she had informed NSW health minister John Della Bosca and Greater Western Area chief executive Claire Blizard and they were “appalled”.

Mr Coulton said the Federal Government’s aim of phasing out the en-route rebate had sounded the “death knell” for aviation services in western NSW.

The announcement would come as an “incredible shock” to the affected communities and the many people dependent on the services for personal or professional reasons, he said.

“To make matters worse it comes right on the back of an announcement that Qantaslink did not tender for its Narrabri-Sydney route. The effects of these losses on the Parkes electorate will be enormous,” Mr Coulton said.

Mr Humphries said the Rex decision was a “big blow for our remote communities”.

“Many of the local services whether they be health, financial, skill or tourism based will be affected,” he said.

Dubbo mayor Greg Matthews said he understood the “commercial reality” of the decision but was “very disappointed” western communities would suffer.

He said the withdrawal of the services would have minimal impact on the city airport’s budget and hinted that the council might go in search of a carrier willing to take over the routes.

Rex says that Air Link, its fully-owned subsidiary, will “continue to operate and develop its charter services” in addition to growing its third party aircraft maintenance business.

Mr Davis said the changes, beginning on December 20, were “not expected to have any adverse impact “ on the profitability of the group and would result in “few retrenchments” as most staff not required by Air Link would be offered positions within the Rex Group.

kim.bartley@ruralpress.com