REX COMMENDS ABBOTT GOVERNMENT FOR KEEPING ELECTION PROMISES

Regional Express (Rex) has applauded the Abbott Government’s bold and decisive move to abolish the carbon tax, thereby keeping one of its key election promises.

Rex Executive Chairman Lim Kim Hai said, “The introduction of the carbon tax by the Labor Government did not contribute towards saving the Earth, as not a single cent of the funds raised went towards the environment, but in fact caused the aviation industry and the economy as a whole to enter a deep tailspin.”

“We noticed Rex passenger numbers collapsed almost from day one of the introduction of the carbon tax. The carbon tax cost Rex about $2.5 million a year whilst our Profit Before Tax tumbled $15.9 million that year as overall business contracted.”

“We are optimistic that the reverse cycle will materialise with the abolition of the carbon tax, and that the economy will start to recover from its present moribund state. Rex did not impose a surcharge when the carbon tax was introduced but we will look at reducing our fares when we see passenger numbers improving.”

“However, the removal of the carbon tax alone will not be sufficient to save the aviation sector, especially regional aviation which has been badly damaged by the misguided policies of the previous government. The two major domestic carriers are expected to lose over $1.5 billion in the last Financial Year while two more regional airlines have in the past seven months joined the graveyard of failed regional carriers since 9/11.”