Rex, Skippers secure regional routes reign

Rex Airlines and Skippers Aviation have once again secured deals to exclusively operate regional air services in the Great Southern, Northern Goldfields and Gascoyne regions after winning the state government’s tender process.

Rex was re-awarded the right to operate services between Perth and Albany, Esperance, Carnarvon and Monkey Mia.

Stan Quinlivan-led Skipper Aviation again notched the rights to operate the air routes of Perth to Laverton and Lenora and Perth to Wiluna, Meekatharra and Mount Magnet.

Under the deal, Skippers Aviation will continue to operate three weekly return services to Laverton, Leonora, Meekatharra, Mount Magnet and Wiluna, with potential for additional services.

Rex has committed to operating a minimum of 24 weekly return services on the Albany to Perth route, 22 on the Esperance to Perth route and 12 on the Carnarvon route, with seven connecting to Monkey Mia.

But Rex’s services have been criticised in recent months, with delays and cancellations specifically reported on its Albany and Esperance routes.

In April, Rex blamed pilot attribution, skilled labour shortages and supply chain issues for impacting its services.

In a statement on the ASX this monring, Rex Group chair Kim Hai Lim acknowledged the airlines shortcomings.  

“The global supply chain shocks and skilled labour shortages, including pilots and engineers, have severely impacted all airlines and therefore I am acutely aware that Rex’s service levels have not matched the very high standards that Rex delivered in WA since February 2016 until the re-opening after COVID,” Mr Lim said.

“We will repay the trust of the WA state government by putting maximum priority on the services in the state.”

Transport Minister Rita Saffioti said there was no question that recent services, particularly on the Albany and Esperance routes, had not met community expectations.

She said the government was committed to working with the partner airlines to get services back to the high level they once were.

"The recent disruptions are the result of recruitment and supply chain challenges affecting the entire aviation sector,” Ms Saffioti said.

"I've recently held discussions with Rex to ensure every effort is being made to improve the current level of service, and I am pleased a delegation of Rex senior management will be coming to WA in the next week to develop plans for improving the outcomes for their customers.”

Skippers Aviation operations manager Natasha Smith said the company was thrilled to continue servicing regional WA routes.

“With the introduction of the capped airfares and providing support at local community events, skippers looks only to strengthen this service in the future,” she said.

The government’s regional airfare zone cap scheme will continue to apply for personal travel to and from Perth, limiting flights to either $199 or $299 one-way when booked as a return.

Today, the state government announced that 150,000 capped airfares had been flown since the scheme was launched in July 2022.

In the June quarter, 42,500 capped airfares were used by regional residents, representing a 5 per cent increase on the previous quarter results.

The Karratha to Perth remained the most popular route for regional residents followed by Kalgoorlie, Port Hedland and Broome.

"It's abundantly clear that in a time when cost of living continues to impact people's lives, this scheme is helping to alleviate what was once a significant cost for regional residents,” Ms Saffioti said.

"To see more than 150,000 zone cap airfares booked in the first 12 months and consistent growth over the year shows the impact this scheme is having on people's lives.”