After a tense exchange over the course of several days last week, the Bega Valley Shire Council issued an “unreserved apology” for an “oversight” in not consulting sooner over a proposed passenger landing fee increase.

In a letter to media this week, Rex said it had taken note of the apology and council’s undertaking to withdraw the proposed increase at the next council meeting on June 28.

“Rex accepts this apology and welcomes the mayor’s commitment to work on a three-year partnership with Rex to improve air services to Merimbula which will deliver greater socioeconomic benefits to the local community and surrounding region,” Rex’s general manager of network strategy and sales Warrick Lodge said.

“In light of the partnership, Rex has decided to proceed with a plan to increase services to Merimbula with an additional 16,000 seats a year.

“With current annual passenger numbers through Merimbula airport of around 56,000, this represents a very aggressive increase in seat capacity.

“However, we are confident that this increase will spur economic and tourism activities which in turn will support the additional capacity.”

Mr Lodge said Rex would present its plans to the council in time for the June 28 meeting and once approval was given, the improved schedule would be implemented within three months.