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Profit slump sees Rex come out swinging

written by australianaviation.com.au | February 27, 2013
REX remains at loggerheads with the government, saying its policies have caused the profit downgrade. (Seth Jaworski)

Regional Express has used the announcement of a slump in profits for the first half of the 2012-13 financial by almost a third to launch an extraordinary assault on the federal government’s aviation regulatory imposts.

“From the very first month of this FY, we are seeing the catastrophic impact the various draconian government policies are having on regional aviation,” said Rex executive chairman Lim Kim Hai. “Not only have policies like the carbon tax increased cost significantly, there has also been a significant drop in passenger numbers due to government policies exacerbating the effects of a fragile global economy.”

Rex’s profit before tax for the first half slumped by 32.6 per cent to $12.5 million, the airline said, on revenues of $135 million.

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“Regional aviation has been hit particularly hard. Besides the carbon tax and consistently high fuel prices, it was also the target of an onslaught of government fiscal and regulatory measures which resulted in the steep decline in the results we see today” Lim said. “Many regional carriers are now struggling for survival. If the government does not reverse tack very soon, we will see irreversible damage being inflicted by the destructive policies that they have adopted. ”

Lim said that Rex would work with the Regional Airline Association of Australia “to define critical policy measures that need to be adopted to rescue regional aviation”.

Steer your own in-flight experience – available on print and digital Whether our classic glossy magazine in your letterbox, daily news updates in your inbox, peeling back a few layers in the podcast or our monthly current affair reports, you can count on us to keep you up to date. Sign up today for just $99.95 for more exclusive offers here. Subscribe now at australianaviation.com.au.

8 Comments

  • Ron

    says:

    Tell him to stop whinging. If more regional carriers fail to survive, it’s more business for Rex. You made twelve million bucks. Shut up & go & enjoy it.

  • George

    says:

    You should see the stink that is being made about the Dubbo City Council decision to charge them for security screening. Threatening to leave thw route.Just get on with it, accept it as an increasing part of modern life and concentrate on providing, and improving your service.

  • Raymond

    says:

    Lim, just wait about another 6 months and this toxic and incompetent Government will be gone.

    Ron, do you think it’s a good thing for more carriers to fail? Or would you rather that regional aviation prospered? And I can’t really imagine that you would be overly happy if your salary was cut by a third? You’re still being paid, so stop whingeing…

  • Trash Hauler

    says:

    I believe Lim is spot on and good on him for representing all the regionals. This isn’t just about Rex, it’s about every regional airline. Having grown up in a country town that is very reliant on air travel I appreciate what the regionals have done to develop this country thus far. Many regionals have already failed and will continue to if Labor does not look at applying some common sense reductions to carbon tax levies for smaller operators. Who loses? The residents who are now forced to drive 7 hours to a major citiy vs a 45min flight. You appear to miss the bigger picture here Ron, you wouldn’t happen to live in a capital city would you?

  • TrashHauler

    says:

    I believe Lim is spot on and good on him for representing all the regionals. This isnt just about Rex, it’s about the regional airline industry. Having grown up in a country town that is very reliant on air travel I appreciate what the regionals have done to develop this country thus far. Many regionals have already failed and will continue to if Labor does not look at applying some common sense reductions to carbon tax levies for smaller operators. Who loses? The residents who are now forced to drive 7 hours to a major city vs a 45 min flight. You appear to miss the bigger picture Ron, you wouldn’t happen to live in a capital city would you?

  • Mark (different to above)

    says:

    I think Ron is missing the point altogether. As a company or individual Ron, you can strive to make a small profit or just cover the household bills, or you can strive to be the best you can possible be as an individual or company and achieve personal or company goals/profit/income etc. Some people are happy with $45,000 a year, others want to earn that in a month. Good on Lim and Rex for aiming to be the best regional airline they possible can be and help to build Australian jobs and profits at the same time. (and I do live in an east coast capital city), but regional Australia is a key piece in the puzzle!!

  • Sam

    says:

    I’m all for a carbon tax but Australia’s is too high. It needs to be much lower than it is

    Yes they made a profit. But only a small one. Not one that is great enough to help reinvest in new facilities, aircraft etc

  • Michael Anderson

    says:

    Rex there are a few very profitable routes that you should be looking at but aren’t. Are you afraid of Qantas/Virgin ?

Leave a Comment to Michael Anderson Cancel

Your email address will not be published. Required fields are marked *

Profit slump sees Rex come out swinging

written by australianaviation.com.au | February 27, 2013
REX remains at loggerheads with the government, saying its policies have caused the profit downgrade. (Seth Jaworski)

Regional Express has used the announcement of a slump in profits for the first half of the 2012-13 financial by almost a third to launch an extraordinary assault on the federal government’s aviation regulatory imposts.

“From the very first month of this FY, we are seeing the catastrophic impact the various draconian government policies are having on regional aviation,” said Rex executive chairman Lim Kim Hai. “Not only have policies like the carbon tax increased cost significantly, there has also been a significant drop in passenger numbers due to government policies exacerbating the effects of a fragile global economy.”

Rex’s profit before tax for the first half slumped by 32.6 per cent to $12.5 million, the airline said, on revenues of $135 million.

Advertisement
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“Regional aviation has been hit particularly hard. Besides the carbon tax and consistently high fuel prices, it was also the target of an onslaught of government fiscal and regulatory measures which resulted in the steep decline in the results we see today” Lim said. “Many regional carriers are now struggling for survival. If the government does not reverse tack very soon, we will see irreversible damage being inflicted by the destructive policies that they have adopted. ”

Lim said that Rex would work with the Regional Airline Association of Australia “to define critical policy measures that need to be adopted to rescue regional aviation”.

Steer your own in-flight experience – available on print and digital Whether our classic glossy magazine in your letterbox, daily news updates in your inbox, peeling back a few layers in the podcast or our monthly current affair reports, you can count on us to keep you up to date. Sign up today for just $99.95 for more exclusive offers here. Subscribe now at australianaviation.com.au.

8 Comments

  • Ron

    says:

    Tell him to stop whinging. If more regional carriers fail to survive, it’s more business for Rex. You made twelve million bucks. Shut up & go & enjoy it.

  • George

    says:

    You should see the stink that is being made about the Dubbo City Council decision to charge them for security screening. Threatening to leave thw route.Just get on with it, accept it as an increasing part of modern life and concentrate on providing, and improving your service.

  • Raymond

    says:

    Lim, just wait about another 6 months and this toxic and incompetent Government will be gone.

    Ron, do you think it’s a good thing for more carriers to fail? Or would you rather that regional aviation prospered? And I can’t really imagine that you would be overly happy if your salary was cut by a third? You’re still being paid, so stop whingeing…

  • Trash Hauler

    says:

    I believe Lim is spot on and good on him for representing all the regionals. This isn’t just about Rex, it’s about every regional airline. Having grown up in a country town that is very reliant on air travel I appreciate what the regionals have done to develop this country thus far. Many regionals have already failed and will continue to if Labor does not look at applying some common sense reductions to carbon tax levies for smaller operators. Who loses? The residents who are now forced to drive 7 hours to a major citiy vs a 45min flight. You appear to miss the bigger picture here Ron, you wouldn’t happen to live in a capital city would you?

  • TrashHauler

    says:

    I believe Lim is spot on and good on him for representing all the regionals. This isnt just about Rex, it’s about the regional airline industry. Having grown up in a country town that is very reliant on air travel I appreciate what the regionals have done to develop this country thus far. Many regionals have already failed and will continue to if Labor does not look at applying some common sense reductions to carbon tax levies for smaller operators. Who loses? The residents who are now forced to drive 7 hours to a major city vs a 45 min flight. You appear to miss the bigger picture Ron, you wouldn’t happen to live in a capital city would you?

  • Mark (different to above)

    says:

    I think Ron is missing the point altogether. As a company or individual Ron, you can strive to make a small profit or just cover the household bills, or you can strive to be the best you can possible be as an individual or company and achieve personal or company goals/profit/income etc. Some people are happy with $45,000 a year, others want to earn that in a month. Good on Lim and Rex for aiming to be the best regional airline they possible can be and help to build Australian jobs and profits at the same time. (and I do live in an east coast capital city), but regional Australia is a key piece in the puzzle!!

  • Sam

    says:

    I’m all for a carbon tax but Australia’s is too high. It needs to be much lower than it is

    Yes they made a profit. But only a small one. Not one that is great enough to help reinvest in new facilities, aircraft etc

  • Michael Anderson

    says:

    Rex there are a few very profitable routes that you should be looking at but aren’t. Are you afraid of Qantas/Virgin ?

Leave a Comment to Michael Anderson Cancel

Your email address will not be published. Required fields are marked *

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