Rex's Fees Have Not Increased

Rex's Fees Have Not Increased

The aeronautical fees paid by Regional Express (Rex) at Sydney Airport have not increased since June 2002 prior to the privatisation of Sydney Airport .

The CEO of Sydney Airport, Russell Balding, released this fact to respond to the call by Rex's Deputy Chairman, John Sharp, for Sydney Airport to have a moratorium on rate increases this financial year.

"Mr Sharp is apparently ignorant of the fact Rex has enjoyed a 6 year long moratorium on charges at Sydney Airport.

"Sydney Airport recognises the challenging environment that our airline customers currently face, with fuel prices at record highs.

"But I reject absolutely the claim that Sydney Airport has not acted responsibly.

"Like all businesses, Rex has to act to manage the impact of high fuel prices. This is best done by sensibly managing the business not by attacking a provider that has not increased its fees in 6 years.

Since 2002 Rex has paid $4.50 per passenger for the use of T2, parking aprons and check in counters and $3.44 per tonne for a runway movement.

They also pay $0.87 for government mandated passenger and checked bag security screening which is about half the actual cost of providing these essential security services.

Russell Balding also criticised the personal hypocrisy of John Sharp in calling for intervention by the Australian Government into aviation pricing.

"When John Sharp was Transport Minister in the Howard Government he progressed the airport privatisation agenda that enjoyed bipartisan political support. Now that he is out of politics and onto an airline board he is seeking to reintroduce politics into aviation pricing. People should look at his actions rather than listen to his rhetoric.

"In commenting on Sydney Airport's 10% profit increase, Mr Sharp may pause to reflect that Rex achieved a 50.4% profit increase at their last annual financial results announcement."


SOURCE: Sydney Airport

Michael Samaras
Manager Media and Communications
(02) 9667 6470 or 0437 033 479