Australian regional carrier Rex - Regional Express (ZL, Wagga Wagga) has issued a warning that changes to the country's skilled visa program will affect its operations, as well as essential air services in regional areas.

Under a proposal by the Australian Federal Government, a number of occupational categories will be removed from the list of skilled workers, including Aeroplane Pilot, and Aircraft Maintenance Engineer (Avionics). Another category, Aircraft Maintenance Engineer (Airframe and Engine), will only be eligible for temporary stays.

REX says that without the ability to recruit foreign pilots and engineers, small airlines will be forced to shut down services to regional areas and focus instead on more profitable routes. Chief Operating Officer Neville Howell said that even though REX has its own pilot academy, it struggles to recruit and retain enough qualified staff domestically.

"Despite seven years of effort and 20 completed intakes of cadet pilots, REX is still obliged to recruit overseas as the rate of poaching, reflecting the shortage of pilots, by the larger carriers locally and abroad, is simply staggering," Howell said.

Howell further criticised the government for removing aviation professionals from the skills shortage list without any input from the aviation industry, and calls upon Minister Peter Dutton to revise the decision.

"We call upon the Prime Minister and the Minister for Immigration and Border Protection to place an immediate moratorium on the changes to the 457 visa program until a well-considered replacement list has been formulated reflecting the real needs of our economy," the statement concludes.

REX operates an all-Saab fleet of twenty-seven Saab 340B and nineteen Saab 340B(Plus) aircraft, serving 58 destinations throughout Australia.