Eurobodalla Shire Council remains confident Rex won't be going anywhere despite the airline withdrawing services from five regional centres around NSW and South Australia.
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The impacted centres are Bathurst in NSW's Central West; Grafton and Ballina in NSW's Northern Rivers and Lismore on the state's north east, and Kangaroo Island in South Australia.
Flights to these five centres will cease on June 30, coinciding with the end of the Federal Government's Regional Airline Network Support (RANS) program, except for the Ballina route, which will terminate on July 2.
Two other NSW regional routes are pending further review.
A Council Spokesperson said that while each route was Rex's decision, they remained confident the Moruya route would remain in place.
"Council recently had meetings with Rex about growing passenger numbers (in Moruya) as well as about a new long-term partnership between Rex and Moruya Airport," the spokesperson said.
"While the decision on where airlines fly is their own decision, Rex has indicated they are interested in a long-term relationship.
"The best thing the local community can do to ensure Rex stays in our area is to use the service. With new connections from Moruya to Brisbane, the Gold Coast and Melbourne, there are event more opportunities to do this."
Rex's deputy chairman John Sharp AM said the decisions (around the country) were made to improve the airline's financial performance.
"Rex has faithfully serviced most of these routes for 20 years and some of them for more than 30 years by Rex's predecessor Kendell and Hazelton. So it is with a really heavy heart that we have to announce the cessation of services in an effort to improve Rex's financial performance," he said.
"Qantas' well-publicised predatory actions on Rex's regional routes have meant that Rex no longer has the ability to cross subsidise these marginal routes.
"It is unfortunate that these regional communities are the collateral damage of Qantas' bullying and heartless behaviour. This behaviour is all the more unconscionable after receiving over $2 billion in Federal bailouts over the past two years."
Qantas has hit back in response to the claims made by Rex.
"Rex is always looking to blame others when it withdraws from regional routes, but none of its claims stack up to scrutiny," the spokesperson said.
"Rex has a monopoly on three of these routes it's abandoning, so if it can't make them work, it has no-one else to blame but itself.
"Rex says it doesn't have the funds to cross subsidise these routes, but it doesn't have a problem finding money to invest in more aircraft for its capital city 737 operations. That must be confusing for regional customers given Rex's tagline is that their heart is in the country.
"Rex's claims against Qantas have become so far-fetched, we had to create a dedicated page on our website to rebut them and update it on a fairly regularly basis as they cook up more weird conspiracy theories."
Qantas says Jetstar and Virgin also operate on the Sydney-Ballina route, Qantas operates on both the Adelaide-Kangaroo Island and Sydney-Ballina routes.
The Qantas Group has launched more than 50 new domestic routes since the start of the pandemic, with Rex operating on 10 of those routes.
Rex says its remaining regional network will be closely monitored and further adjustments could be announced in the coming months.
Rex is Australia's largest independent regional and domestic airline operating a fleet of 60 Saab 340 and six Boeing 737-800 NG aircraft to 62 destinations throughout all states in Australia.
In addition to the airline Rex, the Rex Group comprises wholly owned subsidiaries Pel-Air Aviation (air freight, aeromedical and charter operator) and the two pilot academies, Australian Airline Pilot Academy in Wagga Wagga and Ballarat.