THE imminent repeal of the carbon tax could lead to lower airfares for Regional Express (Rex) customers in Armidale, according to the airline’s deputy chairman John Sharp.
Airlines were hit hard when the tax was introduced two years ago and Rex was hit with a 60 per cent profit reduction the first year it was in effect, as it attempted to absorb the extra cost.
In an attempt to continue growing its patronage, the airline plans to pass on savings from the repeal to its passengers.
“We would make our best endeavours to pass on the savings,” he said.
“Rex’s business model has been to keep ticket prices as low as possible in order to attract as many passengers as possible.”
Mr Sharp’s comments come in stark contrast to the position of Rex’s rivals, Virgin and Qantas, who have both indicated they won’t be lowering ticket prices should the tax be axed.