FEW things shape consumer behaviour as strongly as price. In the regional airline market, where the product is relatively generic and competition scarce, price is an even more powerful motivator.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
So it’s no surprise that at the core of the debate surrounding Tamworth Regional Council (TRC) and Regional Express (Rex) is price.
Forget the theoretical arguments about a “level playing field”, Tamworth councillors should have just one question blazing in their minds when they come to vote on whether to allow Rex into Tamworth – is it good for constituents?
If Rex could halve the average price of tickets to Sydney overnight, as it has in Dubbo, then the answer to that question can only be a resounding “yes”.
A few short weeks ago, the prospect of Rex flying into Tamworth in the near future looked grim.
TRC senior executives and council powerbrokers were staunchly opposed to building an unscreened area at Tamworth airport and didn’t even bother formally responding to Rex’s EOI tender in January.
But through a determined Northern Daily Leader campaign and the will of a handful of councillors, the issue has moved from the back of a filing cabinet to the political realm.
Councillors have now taken the first tentative steps in securing Rex by commissioning a report into the cost of setting up the necessary infrastructure.
As it has from the outset, the issue remains about one thing – natural justice.
Should a business not required by law to use a service be forced to pay for that service?
Should a community be held to ransom by a monopoly carrier when there’s another one willing to compete?
The flow-on benefits of cheaper air tickets for local business, tourism and household budgets are profound.
If QantasLink had resisted the temptation to price gouge, this debate would likely not have flared up.
Rex’s deputy chairman John Sharp, a former transport minister in the Howard government, says the company will not be kept in a holding pattern while council makes up its mind.
Let’s just hope our councillors are listening.