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Rex Airlines warns competition is driving up regional airfares
During a public hearing on Australia's aviation sector, Rex Airlines warned that intense competition in small regional markets is forcing the carrier to raise ticket prices or cancel services. Rex's network strategy general manager, Warrick Lodge, attributed these challenges to oversight from the Australian Competition and Consumer Commission, noting that half-empty planes often fail to cover operating costs.
Regional advocates, including Madeleine Lawler of Regional Development Australia, highlighted the economic impact of high airfares on isolated and aging populations. Lawler noted significant price disparities, stating that flights from Coffs Harbour or Port Macquarie cost roughly 71 cents per kilometre, whereas budget options in Ballina average 12 cents per kilometre. She warned that a lack of affordable options harms local tourism economies.
Rex's financial instability was also discussed, noting its entry into voluntary administration in July 2024 and its subsequent acquisition by the American company Air T in December 2025. The airline cited the Melbourne to Albury route as an example of market saturation, where Rex provided 40,000 seats for a market of 22,000 passengers before Qantas entered the route. The Royal Flying Doctor Service emphasized that regional airlines remain critical to their medical operations.
Entities
Air T · Australian Competition and Consumer Commission · Rex Airlines · Royal Flying Doctor Service · Warrick Lodge
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] The Royal Flying Doctor Service stated that regional airlines are critical to their operations. www.perthnow.com.au
- [● 2 SOURCES] Flights from Coffs Harbour or Port Macquarie cost approximately 71 cents per kilometre, compared to 12 cents per kilometre from Ballina. www.dubbophotonews.com.au · www.orangecitylife.com.au
- [● 3 SOURCES] Rex provided 40,000 annual seats to the Melbourne to Albury market, which only had 22,000 passengers. www.dubbophotonews.com.au · www.orangecitylife.com.au · www.perthnow.com.au
- [● 3 SOURCES] Rex entered voluntary administration in July 2024. www.dubbophotonews.com.au · www.orangecitylife.com.au · www.perthnow.com.au
- [○ 1 SOURCE] Rex has operational subsidies in place with the Queensland and Western Australian governments. www.perthnow.com.au
- [● 3 SOURCES] Stiff competition in small communities is forcing Rex to raise prices and cancel routes. www.dubbophotonews.com.au · www.orangecitylife.com.au · www.perthnow.com.au
- [● 3 SOURCES] Rex was purchased by the American company Air T in December 2025. www.dubbophotonews.com.au · www.orangecitylife.com.au · www.perthnow.com.au