The Write Direction: A saviour has arrived

BACK in February this year I wrote about our disappearing airlines, particularly the ones that serve regional and rural areas.

The big boys are only interested in the high-volume capital city traffic which means that the lesser populated but important regional areas are at real risk of losing air services to the capital cities.

My interests went back a long way when I was in business and East West Airlines (EWA), which was the only airline in Australia that owned its own aircraft, was losing business due to the decline of regional commerce due to a longer-than-expected rural drought.

At that time an American helicopter company thought it could expand by offering to save EWA.

This regional owned airline had merged with Tamair (which taught me to fly), but it finally disappeared into becoming part of Qantas Link which still provides services to the larger regional cities.

Since then, we have had Hazelton airline from Orange and Kendell from Wagga which joined up to become REX or regional Express.

It is this airline that basically financially failed about twelve months ago but has been kept in operation by government subsidy.

It seems the government has realised the growing importance of regional and rural locations, into which many capital city residents are moving for cheaper homes and a better lifestyle.

This has been a good move by the Government; keeping the operation alive and functioning until a buyer could be found. Suddenly another USA company in the air freight business, Air T, has entered the space for acquiring REX.

They are said to be dealing with both the receiver in order to buy the airline and the government in relation to continuing with its subsidy until such a time as REX can be profitably realigned.

This is a most welcome decision by Air T.

Without obviously knowing any of the details that are being dealt with in negotiations to purchase REX , I would hope that the population of regional locations will similarly be optimistic and productive in relation to the survival of REX and the service it provides to “the bush”.

By John BLACKBOURN