THE announcement in late July that Rex Airlines had entered voluntary administration came as a shock to many regional communities that rely on commercial aviation services by the nation’s third biggest airline.
Rex Airlines provides essential air trans- port services to SA regional centres such as Ceduna, Coober Pedy, Port Lincoln, and Mount Gambier, as well as Kangaroo Island and other important interstate regional centres, including Broken Hill and Mildura.
These services are crucial not only for community access to healthcare, education and centralised government services, but also for social and economic connectivity through tourism and market access.
Many passengers travel for work-related purposes, supporting workforce participation in regional locations.
While we understand that regional routes are currently set to continue, the potential for future disruptions remains a significant concern to residents and businesses alike, including the primary production sector.
For our state’s economic ambition to be realised, we need connectivity for regional residents to access central services, and for tourists and service providers to get to our key regional centres.
Combined, the Eyre and Western, Far North and Limestone Coast regions contribute $12.63 billion in gross regional product.
These regions support thriving pastoral enterprises and a significant proportion of our grain, forestry and seafood sectors.
In addition, it is estimated that agri-tourism contributes $994 million to the SA economy annually.
Farm stays, cellar doors, seafood experiences, artisan food products… our regions boast a lot when it comes to the state’s tourism sector!
In order to maintain and grow that value, we need a viable regional airline so visitors can quickly and easily access the vast array of unique experiences our regions have to offer.
Without vibrant regional communities, the primary industry sector cannot sustain its position as SA’s major exporter and an employer of one in five South Australians.
Like all communities, the regional com- munities that support the primary industries sector need adequate services.
Premier Peter Malinauskas was quick to acknowledge the significance of the Rex Airlines announcement to these communities in his public commentary at the time.
The SA Government’s focus on regional economic development, particularly in northern regions, is at risk if our primary regional airline is compromised.
While we recognise the Federal Government’s efforts to address this issue on a national level, the situation remains critically important for SA and its regional populations. It is unclear what forms of support will be needed long term.
Administrators are working hard to restructure the Rex Airlines business and are expected to update creditors in the coming weeks.
We know that domestic aviation has faced significant challenges since COVID-19 and tough economic conditions prevail.
Given the ongoing uncertainty surrounding Rex Airlines’ future, PPSA has met with our State Government to discuss the implications of this situation should Rex Airlines cease operations.
We need government and industry to be working together to explore potential options and alternatives for maintaining regional air routes.
After all, it is in our collective interest to keep regional SA open for business.
This column was written by PPSA Chair Professor Simon Maddocks and first appeared in the 29 August 2024 edition of Stock Journal.
