The mayor of Albany has lashed Rex Airlines for leaving the city to pay the “price of its incompetence”, while welcoming a government package that ensures the region will be serviced until June 2025.
Mayor Greg Stocks said the city was “very unhappy” to be left with a $456,000 debt from the airline, revealing the substantial charge was pushed down from an initial bill of “almost $700,000”.
Mr Stocks criticised the regional airline on Tuesday, praising the Federal Government’s $80 million financial aid announcement that comes as the company’s administrators request to extend their November 25 deadline by another eight months, giving them more time to secure a buyer.
“We were getting a bit nervous as that date approached that there was no news, so this is a very welcome development to hear that we now have flights guaranteed until June 30, 2025,” he said.
“(Rex is) absolutely critical — this is not an airline that takes people on holidays around Australia or internationally — this supplied the business of government, medical professionals coming in and out, people travelling to Perth, tourism and personal business, so it’s very important that we have a guaranteed supply of flight.”
The company, which entered voluntary administration in July, racked up a large sum of unpaid bills to the city, having not coughed up for landing fees and payments due “in the normal course of business” since May.
“We’re very unhappy about that,” Mr Stocks said.
“This the second time it’s happened to Albany, as when Virgin went under, Albany ratepayers were up for $85,000.
“Our thoughts are that we will not enter into a contract arrangement again where we are being paid in arrears, whoever it is.
“We’re of the view that this is a regional asset and it’s unfair that the Albany ratepayers are picking up the bill for a second time.
“Albany ratepayers are paying the price for their incompetence.”
He said the matter was “unavoidable at this point” as the city was unlikely to get additional money out of Rex’s sale, given its $500m debt to 4800 creditors, but the city would “learn from that”.
He said the city was now focusing on the future, using the additional time granted by the extension to plan and lobby the Government to secure funding for airport upgrades. He said he believed the company servicing Albany after Rex would probably offer 100-seater planes — a capacity the airport does not currently have.
Rex also owes the shire of Esperance $440,587.