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Rex cuts flights across NSW, announces job losses

written by WOFA | September 24, 2014

Rex has backed calls from the RAAA for a more balanced fuel levy system. (Seth Jaworski)
Rex aircraft at Sydney Airport. (Seth Jaworski)

Regional Express (Rex) says falling profits have led to job losses and cuts across its route network in NSW.

Rex chief operating officer Neville Howell says flights to Taree, Grafton, Lismore and Newcastle will be reduced from October 27 following a board-initiated network review following “two consecutive years of steep profit declines”.

“Several routes on the NSW network carry heavy losses and the situation is no longer tenable,” Howell said in a statement on Tuesday.

“The board had ordered a review to either drop or reduce services on our most marginal routes. Management was able to gain board approval to maintain services to all routes but with capacity reduced to better match demand.

“To improve operating efficiencies some routes are being linked with another port.”

Howell said redundancies would be offered across the airline group but offered no figure on how many jobs would be affected.

Further details were being sought from Rex.


“Earlier the board announced, for the first time in our history, redundancies affecting various positions across the Rex Group. This will again be reviewed at the next board meeting at the end of November,” Howell said.

Rex reported net profit for the 12 months to June 30 2014 of $7.725 million, down 44.9 per cent from $14.018 million in the prior corresponding period.

Revenue fell 1.9 per cent to $253.3 million, while passenger numbers declined 3.4 per cent to 1.053 million, Rex said on August 28.


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