TAREE'S air service provider, Regional Express (Rex) has announced that it will be significantly reducing capacity on several of its NSW marginal routes, including Taree, in its most wide ranging network review to date.
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"The review was triggered by two consecutive years of steep profit declines which saw the airline's profits plummeting by 75 per cent during this period," Rex chief operating officer, Neville Howell said.
"This network review is the second phase of our overall strategy to improve profitability. Earlier the board announced for the first time it our history, redundancies affecting various positions across the Rex group. This will again be reviewed at the next board meeting at the end of November.
"Several routes on the NSW network carry heavy losses and the situation is no longer tenable. The board had ordered a review to either drop or reduce services on our most marginal routes.
"Management was able to gain board approval to maintain services to all routes but with capacity reduced to better match demand. To improve operating efficiencies some routes are being linked with another port," Mr Howell said.
Rex announced that the new arrangements will affect Taree, Grafton, Lismore and Newcastle and will take effect from October 27.
