Millions of government dollars on the way for ‘Rexit’ airport

QantasLink is currently the only airline servicing Whyalla Airport after Rex sensationally pulled out last year, and has recently announced plans to phase out the smaller Dash 8 turboprop variants from its fleet in favour of more Q400s.

“We welcome the announcement by the Federal Government to support the necessary runway upgrades at Whyalla Airport,” said QantasLink CEO Rachel Yangoyan.

“This is an important step in ensuring there is ongoing connectivity for the people of Whyalla.

“Our investment in an all Q400 fleet means larger aircraft flying to and from Whyalla, providing more seats and a faster journey for customers.

“A single fleet type for our turboprop flying will also help boost reliability for our regional flights.”

As these aircraft are larger and faster than the ones they are replacing, the upgrades have become necessary to accommodate them, according to Transport Minister Catherine King.

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“The Albanese Labor Government believes in maintaining a strong regional aviation network in Australia, and the upgrades to Whyalla Airport are essential for that,” she said.

“This investment will ensure Whyalla locals and surrounding communities remain connected and have access to the critical services they require.”

SA Senator Karen Grogan thanked the government for the funding, saying she had been “proud to stand alongside the Whyalla community” in advocating for the runway upgrades.

“As locals know, Whyalla Airport is not just a transport hub – it is a key facility for local business, a connection to vital services in the city, and a crucial healthcare facility enabling access to specialist and advanced care,” she said.

Whyalla Council last year saw the end of Rex services after it made the move to pass on the costs for enhanced security screening to airlines, with the carrier’s general manager of network strategy, Warrick Lodge, saying at the time it was being forced to “subsidise the security screening costs of Qantas whose services are legally required to be screened”.

“The significant additional security cost makes the Whyalla to Adelaide route unviable for Rex and as a result of Council’s decision Rex has no option but to exit,” he said.

“We have made it perfectly clear to the City of Whyalla for many months that this unnecessary and significant cost will result in the route being financially unsustainable. Rex’s decision should therefore not come as a surprise to the Council.”

In response, Mayor Phill Stone accused Rex of defaming his council, saying it being “unfair and misleading” by “using council as a scapegoat” for its decision.

“This is not about favouring one airline over another, quite the opposite in fact — we passed on the Federal Aviation safety screening costs to both airlines evenly,” he said.

“Rex chose to exit without trying to implement the increased costs, while Qantas has demonstrated its commitment to the Whyalla community by maintaining and increasing its local services.”

A report by the independent Essential Services Commission of SA earlier this year subsequently found that the council had become “unsustainable” due in part to the loss of Rex.

In the report, the regulator said the airport’s poor performance was the primary factor behind the council’s debt, which will see it lose $5m between 2023–24 and 2032–33.

“With airport operations excluded, the council registers a $1.3m surplus over this period,” it revealed.