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Rex Rejects Virgin Blue ‘Publicity Stunt’ Offer
Wednesday, December 22, 2004

Rex Managing Director Geoff Breust said today that comments his airline needed a “rescue package” were rubbish.

“Rex is performing exceptionally well - for the five months to end of November, Rex recorded an EBT of $4.1m on a budget of $2.9m for the full 6 months to December and was well on target to exceed our revised target of $4.5m for the first half of the year. Our operations across our network, with the exception of Canberra, contribute very positively,” Mr Breust said.

“Virgin Blue’s public comments about the Canberra – Sydney route are unfortunate and appear aimed at achieving publicity at Rex’s expense.

“The fundamental reasons which led Rex to withdraw services from the Canberra - Sydney route have not changed.

“If the Government re-allocated government travel as Virgin Blue suggest, then Rex believes the route would be viable for us and there would be no need for assistance from anyone, let alone another airline.

“In our discussions with the Government prior to our decision to withdraw last week, the Government made it clear it was not prepared to make such directions.

“Nothing has changed – advice we received as late as last night confirmed this as the Government’s position.

“For Virgin Blue to spruik such a proposal, which on our assessment is not going to be a reality, is truly unfortunate and insensitive particularly for the Rex Canberra Staff.”