Regional Express airline (Rex) is taking Dubbo City Council to the NSW Land and Environment Court next week over the row about charges for airport security screening.
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A court registrar confirmed yesterday Rex had filed legal papers with the court on May 23.
"It is currently a matter before the court," she said.
The first directions hearing in the case will be before the list judge on June 14.
Dubbo mayor Mathew Dickerson would not comment on the matter saying the information remained confidential to the council.
The row between the council and Rex, Australia's biggest regional airline, erupted earlier this year when the council voted unanimously that Rex would have to pay its share for the operation of the newly-installed security screening at the airport.
The council's decision came after Qantas announced it would introduce bigger 74-seat Q400 planes to service the Dubbo to Sydney route.
A federal law requires passengers on planes of a certain size (like the Qantas Q400s) to be security screened. Travellers on smaller-size planes, like those used by Rex, do not have to be screened.
The council had to install screening equipment to comply with the federal law.
Commenting on the council decision to require Rex to pay for screening of its passengers, the airline said it would be forced to pay about $9 for each passenger departing from Dubbo.
But Cr Dickerson said the cost was $4.69 per traveller.
The deputy chairman of Rex, Mr John Sharp, earlier this year vowed the airline would not pay the costs and threatened to pull out services.