Regional Express calls out Wagga council over 'good faith' fee freeze in light of Douglas Aerospace collapse

The airline's executive chairman Lim Kim Hai described Wagga City Council general manager Peter Thompson's "good faith" pledge to stay a 1.9 per cent fee increase as "condescending".

"The 'act of good faith' mentioned is extremely condescending and is an insult to Rex and all the other stakeholders," Mr Lim wrote in a letter to Mr Thompson. 

"I think many have forgotten, or have chosen to forget, the history behind where we are at today."

Mr Lim accused the council of not participating in the airport advisory committee, which oversees the draft airport budget, under previously agreed terms. 

Mr Lim claimed the council had risked the committee becoming "simply a whitewash".

Mr Thompson told The Daily Advertiser that he meant no disrespect in his comments, which he had made both to a council meeting on Monday and the airport advisory committee last week.

"It was well received by all the members of the group on the night; it was something that was seen as a positive thing," he said.

"For the chairman to say that it's condescending, I can't comment on his views but on the night it was seen as a progressive thing that met with approval of the group."

Mr Lim's letter highlighted Rex's actions in the Douglas Aerospace saga.

In 2012, council offered a $2.5 million loan to the aircraft paint service for two aircraft hangers.

After Douglas went into administration, an audit found "a number of shortcomings" in council's "due diligence and governance".

Rex purchased one of the hangars for nearly $2.8m in 2017.

"Out of the goodness of our heart, we agreed to extract council from this embarrassing situation," Mr Lim stated.

Mr Thompson said he could not comment on Mr Lim's characterisation of events.

The Daily Advertiser understands that council's current management is unaware of any formal or informal reciprocal arrangement with Rex beyond the terms of the hangar sale.

Mr Thompson said the council was committed to maintaining the airport.

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