REX has announced its subsidiary AirLink will not take up the licences it was granted for services between Sydney and Cobar and Mudgee because “negotiations on partnership agreements with both councils” had broken down.
In a February 7 statement, AirLink CEO David Brooksby said that the two routes represented a “significant commercial risk” and that the airline was unable to come to an agreement with the councils representing the towns before the service was due to commence.
“As the deadline has been reached, we consider the matter closed,” Brooksby said. “Even if the deadline is extended, Rex is not confident of reaching an agreement given the ambivalent position of one of the mayors.”
REX has also said it will not apply for the Moree licence as that council had not responded to the airline’s call for expressions of interest.
Moree, Cobar and Mudgee were all left without air services following the December collapse of Brindabella Airlines.
