A major relief package is on the way for the Australian aviation industry, Riverina MP and Deputy Prime Minister Michael McCormack has announced.
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Regional Express on Tuesday warned it could be "irreversibly destroyed" unless the government takes emergency measures to ensure its viability during the coronavirus pandemic.
Rex chief operating officer Neville Howell said the airline could fold within six months, and would need to announce "drastic schedule reductions" and drop some routes altogether to buy them some more time.
In a strongly worded letter to Mr McCormack, Mr Howell begged him to waive a range of fees and charges for one year to help them weather the coronavirus storm.
His demands included scrapping the "grossly unfair" fuel levy, waiving all air service charges, and suspending baggage security costs at regional terminals.
On top of waiving fees, Mr Howell demanded the federal government provide a sovereign guarantee for any new loans so that banks will be willing to lend them money to tide them over.
"Rex calls on the leader of the National Party to immediately take vigorous, swift and unprecedented actions," Mr Howell said on Tuesday.
"If regional carriers collapse, so will many regional communities for which the air service is their lifeline."
Early Wednesday morning Mr McCormack announced the relief package that involves the refunding and ongoing waiving of a range of government charges on the industry, including aviation fuel excise, Airservices charges on domestic airline operations and domestic and regional aviation security charges.
He said in a statement these measures are in response to unprecedented and likely sustained period of falling international and domestic aviation demand related to the impact of COVID-19.
The total cost of the measures are estimated to be $715 million, with an upfront estimated benefit of $159 million to airlines for reimbursement of applicable charges paid by domestic airlines since February 1, 2020.
"Our response demonstrates our commitment to supporting the aviation sector as we put Australia in the best position possible to deal with the COVID-19 outbreak," Mr McCormack said.
"Our airlines run on tight budgets at the best of times and these past few weeks have been particularly tough.
"I've been speaking with Australian airline executives every day and will continue to work with them to make sure they receive the support they need."
"Providing this assistance not only helps our airlines but also the entire aviation industry, regional Australians in particular and other industries such as tourism and trade, which depend on aviation."
Rex services Parkes and regional centres like Orange, Dubbo and Bathurst with flights to Sydney.
Mr McCormack said Rex, Qantas, and Virgin were feeling the brunt of the coronavirus pandemic, with plummeting passenger numbers across the board.
Qantas flights also service Orange and Dubbo, however the company has taken a major financial blow after being forced to issue mass cancellations of many domestic and international flights.
Mr McCormack said Rex was a particularly important lifeline for places like Parkes.
The CAPA Centre for Aviation's recent report predicts most airlines will be bankrupt by May, with many airlines already being driven into technical bankruptcy.
The Federal Government will continue to work closely with the aviation industry as it faces the ongoing challenges associated with COVID-19.
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