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Anthony Albanese has again attacked embattled airline Rex, saying the regional carrier should not have tried to enter lucrative urban routes.
The Prime Minister says it is vital that regional communities “continue to have access to aviation services”.
But he has deflected criticism that his government’s apparent lack of action to improve access to slots at Sydney airport was part of the problem for Rex.
“There are a number of issues surrounding Rex,” Albanese said Thursday.
‘One of them is that a regional airline made decisions to invest in routes in which it had not invested before.
‘The Sydney to Melbourne route is not a regional one. It is one of the top ten in the world and at various stages it has literally been number one in the world.
“Aviation is a difficult industry.”
Opposition transport spokeswoman Bridget McKenzie accused Albanese of running a “safeguard network for his favourite airline, Qantas”.
Anthony Albanese is coming under fire for saying regional airline Rex should not have tried to fly its planes between cities: “The Sydney to Melbourne route is not a regional route”
The Prime Minister deflected criticism that his government’s apparent lack of action to improve access to slots at Sydney airport could have been part of the problem for Rex.
He said Rex entered the capital city route competition with a $150 million investment from its partners and when Virgin was grounded during the pandemic.
“The fact that the Prime Minister stands up and says that Rex does not have the right, the experience or the ability to compete against his favourite customer, Qantas, I think speaks volumes about the Prime Minister’s view of Qantas,” he told Sky News.
‘He has run a protection network for that particular airline since he came to power, and he continues to do so.’
Regional Express Holdings Limited filed for voluntary administration on Tuesday evening, resulting in the cancellation of flights on its Boeing 737 inter-capital services.
But flights between regional locations on its Saab 340 fleet have so far remained unaffected.
The Transport Workers Union said more than 600 jobs had been lost with the move and 360 jobs would be made redundant.
Ernst & Young has been appointed as voluntary administrator for Rex, with Samuel Freeman, Justin Walsh and Adam Nikitins to manage the administration.
The government has repeatedly said Rex provides important links to regional communities, particularly capital cities, and will work with administrators.
Competition for access to major airports such as Sydney at peak times was seen as a problem, something Mr Albanese rejected.
Opposition transport spokeswoman Bridget McKenzie accused Albanese of running a “safeguard network for his favourite airline, Qantas”.
“Regional slots have long been guaranteed at Sydney Airport and some recent reforms have been suggested,” he said.
“The previous government was in power for a decade and did nothing about it. We are doing something about it as a result of the recommendations.”
Senator McKenzie said the Albanian government needed to help Rex and improve competition in the aviation sector, dominated by Qantas and a revived Virgin.
“The government has to have a plan and, in the long term, it has to do something to improve competition between airlines in this country, because we have seen two airlines that tried to create competition go into administration in less than four months under its leadership.”
Rex’s fall into administration followed the collapse of regional airline startup Bonza earlier this year.
Senator McKenzie said the government could have changed the slot allocation process but neither Albanese nor Transport Minister Catherine King had acted.
‘She put out a press release, but she didn’t actually do anything to change the situation and make it easier for other competitors against Qantas.’