Regional Express executive chairman Lim Kim Hai.FEDERAL government policies are decimating regional aviation according Regional Express (Rex) Group as it announced its first half FY12/13 results with a profit before tax of $12.5 million on a turnover of $135 million.
Commenting on the results, Rex executive chairman Lim Kim Hai said, as foreshadowed in the profit warning issued at the AGM on November 27 2012, the Group’s profit before tax for the period slumped by 32.6 per cent to $12.5 million.
“From the very first month of this financial year, we are seeing the catastrophic impact the various draconian government polices are having on regional aviation,” Mr Lim said.
“Not only have policies like the carbon tax increased cost significantly, there has also been a significant drop in passenger numbers due to government policies exacerbating the effects of a fragile global economy.
“Regional aviation has been hit particularly hard. Besides the carbon tax and consistently high fuel prices, it was also the target of an onslaught of government fiscal and regulatory measures which resulted in the steep decline in the results we see today.”
He said many regional carriers were now struggling for survival.
“If the government does not reverse tack very soon, we will see irreversible damage being inflicted by the destructive policies that they have adopted. “
This story Administrator ready to work first appeared on Nanjing Night Net.