A public slanging match about fees, between the deputy chairman of Regional Express Airlines (Rex) John Sharp and Dubbo Region mayor Ben Shields, overshadowed a tourism and transport discussion at the Bush Summit on Thursday.
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Mr Sharp fired the first shot in the battle when he said Rex remained one of the last surviving smaller airlines because it focused on keeping costs down.
The comments came after Dubbo Regional Council opted to increase the passenger tax Rex pays by 13 per cent or $1.99, to about $16.90 per passenger.
Rex will start offering $119 flights from Dubbo to Sydney if the council agrees to limit further tax increases to the consumer price index and scrap security screening charges if it is legally allowed to do so.
"We spend more money on airports than we do on fuel," Mr Sharp said.
The passenger fee Dubbo Regional Council charges are still cheaper than comparable airports like Tamworth, Cr Shields said.
Ratepayers would have to fund the airport if Rex didn't pay those fees, he said.
READ MORE: Airline takes Dubbo City Council to court
A $16.90 fee charged by council does not justify the airline charging up to $800 for return flights to Sydney, Cr Shields said.
Most people pay around $169 and Cr Shields was mentioning the higher figure only five per cent of people pay, Mr Sharp said.
Wendy Machin, the panel discussion moderator who along with Mr Sharp was a minister in a Coalition government, repeatedly asked both men to move away from discussing the fee dispute.
The row continues.