Regional Express Airlines has warned it could reduce its flights to Dubbo if the Dubbo Regional Council goes ahead with a planned increase in passenger taxes.
The Council is proposing to increase its charge per passenger from $14.90 to $16.89, a 13 per cent or a $1.99 per sold seat increase upon last year.
A REX spokesperson said they have officially opposed the increase via a letter to Council and as a submission to the Productivity Commission.
"REX has been committed to providing reliable and affordable air services to the community of Dubbo since 2002 and is outraged that the DRC finds such a tax increase acceptable," the spokesperson said.
"Regional aviation remains a volatile environment and REX continues to review the viability of existing air services network-wide.
"The proposed passenger tax increase has forced REX to assess services to Dubbo, which may result in a reduction of services, including services to Broken Hill."
But mayor Ben Shields says the increase is fair.
"The ongoing relationship between Dubbo Regional Council and the airlines that service the community through the Dubbo City Regional Airport are very important to both Council and the wider community," he said.
"The proposed fees and charges have been developed to maintain the standard of service into the future that will sustain the high standard of product and service to both the Airports airline partners and its RPT users.
"Dubbo Regional Council is in conversations with Regional Express Airlines directly, and as a result, it would be inappropriate to comment on this particular instance of feedback whilst that is occurring.
"At the conclusion of the public exhibition period for the Draft Budget, Draft Delivery Program and Operational Plan 2019/2020 on May 31, 2019, all submissions will be reviewed with the full fees and charges go to Council at its June meeting."
A search of available flights between Dubbo and Sydney and Parkes and Sydney showed the cheapest flight from Dubbo was $200.81 while from Parkes to Sydney it was $99.