Individual Dubbo Regional councillors have begun legal action against Regional Express Airlines (Rex) over a strongly-worded letter to Dubbo residents delivered recently via a mass letterbox drop.
The two-page statement printed under the Rex logo and signed off by the airline's executive chairman Lim Kim Hai made accusations against the "leadership" of the council.
The Daily Liberal understands the bill for the legal action against Rex is to be paid by individual councillors and not from ratepayers' money.
Dubbo Regional Council chief executive officer Michael McMahon said the executive leadership team at the council was currently seeking a retraction from Rex about comments made in the letter.
"All available and appropriate avenues are being considered to seek redress to correct the erroneous statements being made by Rex in our community," he said.
Mr McMahon said council directors were weighing up further legal options.
"Myself and the five directors of the council are in the process of assessing what legal action may be taken against Rex concerning comments made in the letter," he said.
Deputy mayor Stephen Lawrence told the Daily Liberal immediately after the letter was sent to householders he wouldn't be bullied by the airline.
"I won't be bullied into selling out ratepayers," he said.
"I won't talk about what legal steps I may pursue.
"However, the people of Dubbo can be assured under no circumstances would I use ratepayer money to pursue a legal remedy."
Rex deputy chairman John Sharp claimed on community radio station DCFM 88.9 the council's legal stance and opinion differed from the broader Dubbo community.
"The most tangible response we have received from the letterbox drop was from the council who are now taking legal action against us for expressing our views," he said.
"They are claiming we have defamed the leadership team of the council.
"However, we believe, from the response we've received, that members of the community agree with our views.
"Most of the reaction we've received has been positive towards what we have said.
"We have said we will withdraw our services from Dubbo and we will take them to other towns that welcome our contribution to their local economy."
WHAT DO YOU THINK? HAVE YOUR SAY