Nevertheless, he's looking to land a "mutually beneficial" deal with Regional Express Airlines (Rex) on its community fare scheme.

"It is very clear to me that the community is directing me as the mayor to do a deal that is sustainable," the mayor of the Dubbo Region said.

Costly airfares and their impact on the region and its residents prompted Cr Shields to call airline operators "greedy" last week.

Rex responded with the offer of a $119 community fare between Dubbo and Sydney.

READ ALSO:

The community fare scheme holds 30 per cent of Rex's seats which must be booked more than 30 days before departure.

It also applies to unsold seats in the 24 hours before take-off.

Conditions placed on the offer by Rex include the capping of the passenger tax at the airport in line with the Consumer Price Index and waiving of security screening charges.

This week Dubbo Regional Council announced it had increased the passenger tax by about 13 per cent to $16.90 to cover maintenance and costs associated with new infrastructure.

"The cost of maintaining our improved and strengthened runway alone is $400,000 annually, a cost I don't think should be a burden to ratepayers alone," Cr Shields said.

"Over a 20-year life cycle, that would be an additional $8 million that would have to be contributed and would result in the airport not being a sustainable, self-funded operation."

Rex reports the rise will cost airlines "more than $400,000 per year more than the already extortionist $4 million" being paid to council.

Rex is paying $350,000 a year for security screening not required under federal legislation.

Cr Shields said Dubbo airport had "a very clear duty of care to protect the travelling public" as the gateway for Western NSW and one of the largest regional airports in NSW.

"I believe we are a leader in security and I make no apology for that," he said.

"With 200,000 passengers arriving and departing every year, it is critical we provide the best possible screening service.

"For REX to argue that they should be exempt from that screening is in my view highly questionable."

The mayor is "seeking urgent meetings" with Rex.