DUDSVILLE COMMUNITY NEWSPAPER

Rex defends price hike

But general manager of network strategy and sales Warrick Lodge said in a statement the higher levy was needed to meet rising oil costs.

“Oil prices have risen by another 10 per cent since the last time we raised the fuel levy and are now at historic highs above US$120 a barrel,” he said.

“The refining margins have also increased, presenting a double blow for airline fuel.”

Mr Lodge said Rex’s Saab 340 planes burned about 700 litres of Jet A-1 fuel in a one-hour flight, such as those from Wagga to Melbourne or Wagga to Sydney.

Rex also faces higher fuel prices than larger airlines.

“Rex does not purchase fuel in advance, nor do we as an independent regional airline enjoy the benefits of the lower fuel prices linked with being part of a larger group due to the significantly larger volumes,” Mr Lodge said.

But while prices are rising in response to fuel prices, Mr Lodge said fares were now lower than five years ago, before the introduction of the fuel surcharge.

Average fares with Rex from Wagga to Melbourne, including fuel charges, have dropped 20 per cent in the last five years.

Mr Lodge said the popularity of discounted online fares had contributed to the drop in average fares, with more than half the passengers on Melbourne-bound flights from Wagga travelling on the lowest fare.

With fuel prices affecting everyone, Mr Lodge said flying with Rex was still economical, despite the rising surcharge.

“It is almost cheaper to take a Rex flight than to drive when all of the motorists’ operating costs are considered, not to mention the significant time savings associated with flying,” he said.

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