Rex’s network strategy general manager Warrick Lodge said in a statement that the council was forcing the airline to pay new charges, despite the federal government determining Rex’s regional aircraft were not required to have passenger security screening.

Whyalla Council announced the charges yesterday, saying costs were being passed onto airport users – including those flying with Rex Airlines and Qantas – after federal funding for mandatory screening at the airport ended.

The council’s mayor saying Rex’s decision to now halt its flights is a “huge blow for our community”.

“With council unable to absorb this additional cost, and not wanting to pass it on to all ratepayers, the most appropriate option was to take the Federal Government’s direction and pass it on to the airlines, meaning airlines will have to cover the ongoing cost of security screening once current funding ceases on 1 July 2023,” a council statement said.

The decision has incensed Rex Airlines.

“Imposing a passenger security screening charge of $35-$40 per departing passenger is a devious and underhanded attempt by Whyalla City Council to force Rex to subsidise the security screening costs of Qantas whose services are legally required to be screened,” Lodge said.

“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.

“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.”

The airline said the extra cost would lead to air fares increasing by around $70 on average but in a statement said “Rex will not rule out resuming services if council invites Rex back under the right operating conditions”.

Lodge was critical of the council saying: “Rex and its predecessor, Kendell Airlines, have serviced the City of Whyalla since 28 June 1986 so it is disappointing that this current council is ungrateful for the 37 years of reliable, frequent and affordable air services that have provided significant socio-economic benefits to the City of Whyalla and the surrounding region.”

But Whyalla Mayor Phill Stone said it was left with few choices after extensive lobbying for continued federal funding to pay for the screening was unsuccessful, and the airlines’ decision would have an impact on the community.

“This is a huge blow for our community,” Stone said.

“For Rex to use council as a scapegoat for this decision and suggest it was ‘underhanded’ is quite frankly unfair, as we have been having ongoing discussions regarding this situation for some time,” he said.

“We will now have to work extensively with the broader airline industry to explore options to help minimise the impact of this decision, and ensure our airport can play a key role in Whyalla underpinning the hydrogen and renewable energy transition for Australia, Asia and beyond.”

Rex Airlines flights to Whyalla are used extensively for fly-in, fly-out workers at the Whyalla Steelworks and mining operations in the regions.

And Stone expected this demand would only increase with the State Government plan to build a green hydrogen hub in Whyalla.

“Security screening was introduced about 18 months ago to meet the Federal Government’s aviation security requirements – with funding provided for the initial implementation – so it’s a major blow for the Federal Government to now cease that ongoing funding,” Stone said.

“Regardless of individual carriers’ requirements, the Whyalla Airport has now become a screened facility to meet Federal aviation conditions, meaning all airlines utilising the facility will need to cover the cost of screening, particularly given passengers cannot be segregated from screening based on their carrier.

“Only passing the cost on to Qantas would create an unfair playing field, due to it resulting in about $80 extra per departing passenger for them, while Rex would incur no additional costs.”

Rex Airlines operates regional and domestic flights to 58 destinations in Australia, and the company previously has raised concerns about Qantas flights on some of its routes, ending its Adelaide to Kangaroo Island flights.