Regional Express has announced that it is shutting down its Rex Flyer loyalty program, blaming the federal government for its demise.
With immediate effect, the airline will no longer renew existing memberships as they come due, and new members will not be accepted. Only accrued points will count towards a reward flight, and all flights will need to be redeemed within six months of the date earned.
“Regional aviation is facing its greatest fight for survival come 1 July 2012 as draconian government measures translate into astronomical cost increases, which for Rex alone amounts to more than $5 million per year,” the company said in an email to Rex Flyer members.
“To put this into perspective, this would be equivalent to the Qantas Group facing a $300 million cost increase, which is more than the $200 million profit the Qantas Group posted last financial year.”
Rex Flyer was a simple program which offered a reward flight for passengers who had completed 10 ‘eligible sector’ flights with the airline.