warning shot? Rex’s announcement it is reviewing the fate of no fewer than seven routes is a warning shot that all is not well in regional aviation. (Scott Mason)

Regional headaches – taxes v reality

The carbon tax is further putting the squeeze on regional airlines’ marginal operations, while the imminent arrival of Virgin ATRs represents a new competitive threat.

The two largest intrastate networks are Queensland, around five million passengers p/a, and NSW two million, but despite recent restarts 26 Queensland and 23 NSW towns that previously had RPT services are still without them.

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