In declaring its annual results, Regional Express’ Executive Chairman Lim Kim Hai has slammed the Federal Government, saying its policies are ‘decimating regional aviation’.

The company posted a profit before tax of $12.5 million, with a turnover of $135 million, representing a 32 per cent slump from last year’s results.

“From the very first month of this FY, we are seeing the catastrophic impact the various draconian government polices are having on regional aviation,” Mr Hai lambasted.

“Not only have policies like the Carbon Tax increased cost significantly, there has also been a significant drop in passenger numbers due to government policies exacerbating the effects of a fragile global economy."

Mr Hai accused the Federal Government of arraying an ‘onslaught of government fiscal and regulatory measures which have resulted in the steep decline in the results’.

"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,” Mr Hai said.