REGIONAL aviation is in need of rescuing according to Regional Express' chairman who revealed a slump in first half results.Rex executive chairman Lim Kim Hai today revealed a 32.6 per cent profit before tax slump to $12.5 million today.
The company issued a profit warning last November.
He said the company was feeling the "catastrophic impact" of government's policies like the carbon tax and regulatory measures.
The company also experienced a drop off in passenger numbers.
"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 results in the steep decline in the results we see today," he said.
"Many regional carriers are 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.
"Rex will work with the Regional Airline Association of Australia to define critical policy measures that need to be adopted to rescue regional aviation. We will call on both the government and the opposition to state their position on these matters prior to the next election."
The company's profit guidance for the full year has been revised downwards to 35-40 per cent below the previous full year results.
The company recorded a $25.5 million net profit to June 30, 2012.