Carnarvon shire writes off $46,000 REX Airlines debt after failing to provide formal notice of fee increase

Regional Express Airlines (REX) will see more than $46,000 in fees waived after the Shire of Carnarvon failed to formally communicate an increased passenger fee. The fee increased 5.8 per cent from $38.50 to $41 on September 25, 2023 and was advertised in the Midwest Times on June 19. The airline was not formally notified and failed to pay the increased amount, resulting in a $46,251.25 underpayment. It was recommended to waive $46,251.25 of REX fees for the 2023-24 financial year at the July council meeting, after the airline argued the shire should have provided a three-month notice of the fee increase. On June 26, a week after the shire informed REX of the underpayment, REX formally requested the waiver because the shire had not sent a courtesy letter to notify the company and the increased fees were not passed on to passengers. While giving notice is considered an industry standard, there was no formal agreement requiring the shire to give three months’ notice for increased airport fees and charges. In consideration of REX’s position and the lack of formal notice, council voted to waive the undercharged amount. Council also recognised REX’s overall passenger fee revenue for 2023-2024 exceeded budget projections. REX will be advised of the new fees for the 2024-25 financial year, which will see another increase to $43, effective from July 28. The decision comes after REX on Monday requested shares be placed in an immediate trading halt after media reported tensions among Rex’s directors and the appointment of a “turnaround team” from Deloitte to save the Sydney-based lower-cost carrier from going under.