The Australian Government has announced up to $80 million in financial support to Rex Airlines, to help sustain essential routes during the airline’s voluntary administration.
This support includes an extension of the Federal Government’s Regional Flight Booking Guarantee, intended to reassure passengers and boost confidence in Rex’s continued operation in rural and regional communities.
Rex Airlines which services Far South Coast communities through it’s Moruya and Merimbula service, has been navigating voluntary administration, with administrators working to stabilise the business and continue service to its extensive regional network.
The funding from the Albanese Government is designed to assist Rex in maintaining routes vital to rural and remote areas, with plans to expand fleet capacity and improve operational reliability across regional Australia.
Eden Monaro MP Kristy McBain said REX is business as usual if you’re flying into or out of the South Coast.
“We are backing regional aviation and this $80 million announcement is another step in working with REX to ensuring a buyer into the future,” Minister McBain said.
“We know how critical REX services are for our community and that’s why we’re going to keep these regional routes running during this voluntary administration.”
A sale of Rex’s subsidiary, Pel-Air Aviation Pty Limited, to Helicorp Pty Ltd, a part of Toll Aviation, was finalised, with proceeds intended to pay down Rex’s secured creditors.
Rex’s administrators have signalled they will apply to the Federal Court to extend the voluntary administration period until June 30, 2025. This extension, supported by the government financing package and a business improvement plan, aims to strengthen the airline’s long-term viability.
To support former employees affected by the administration, the Albanese Government has arranged early access to the Fair Entitlements Guarantee (FEG), ensuring that those who worked for Rex Airlines Pty Ltd, which operated intercity jet services, can access their entitlements without delay. Additionally, administrators, in cooperation with the airline’s primary secured creditor PAG, have committed to paying entitlements to former regional employees who were made redundant during the administration process.
This government-backed financial boost comes amid mounting concerns about the sustainability of regional aviation. With Rex being one of the few providers serving remote communities across Australia, its role in ensuring access and connectivity for these areas has been deemed critical. Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King, said the government’s decision reflected a commitment to maintaining aviation access for regional communities reliant on Rex’s services.
For Rex passengers, the government guarantee on tickets remains in place through the voluntary administration period, which has kept bookings steady thus far. With government support, Rex aims to grow its active fleet and enhance service reliability, which is expected to benefit rural and remote areas that rely heavily on the airline for connectivity.
The administration team for Rex, alongside management, have expressed gratitude for the government’s continued support, noting that this backing provides the necessary resources to embark on a new phase of operational improvements. They encouraged passengers to continue supporting Rex, emphasizing that the investment would be instrumental in ensuring a stable and reliable future for regional air travel.
Images: REX
