WHILE the Federal Government recently announced a program capped at $5 million for unsecured creditors like regional and remote airports impacted by Rex, the Albury, Wagga Wagga and Mildura councils want outstanding debts paid that were left behind by the sudden grounding of Bonza and other carriers such as Jetgo.
Albury City Council Mayor Kevin Mack told ABC News it was owed $996,000 from Rex, Virgin Australia, Bonza and Jetgo, adding multiple regional airports and councils are facing financial strain from multiple airline collapses.
“It is really disappointing that we continually have foregone income because of failures of the carriers,” Mack said.
“If the Federal Government can’t demonstrate an airline that will stand the test of time, they need to look at underwriting an airline,” he added.
Another idea put forward by regional stakeholders is to mandate bonds on carriers that wish to land at regional airports.
The guaranteed insurance would insulate regional airports from any failure by an airline to pay a host of operating charges, such as fees for landing, parking, terminal rent, passenger facilities, ground handling, and jet bridges.
However, a possible downside of implementing such a compulsory scheme could be the disincentive for smaller carriers to land at certain regional hubs, as they may not have the capital required, a scenario that would likely drive up the cost of air tickets if only dominant airlines like Qantas can fly there.
In some encouraging news, Rex’s new owner Air T has agreed to preserve essential regional aviation connectivity.
