Rex Enters Administration, Regional Flights Guaranteed by Government
Regional airline Rex entered voluntary administration in late July, resulting in the loss of approximately 600 jobs. The airline's capital city routes serviced by Boeing 737s were permanently grounded, but regional services continued to operate without disruption.
The federal government stepped in to provide a guarantee for all regional flight bookings made with Rex during the administration process. This guarantee ensures that customers whose flights are cancelled will receive a full refund, providing certainty for regional travellers and helping to maintain regional aviation in Australia.
Administrators are currently seeking an investor committed to a sustainable commercial regional network. They are confident that a buyer for the airline will be found, with significant interest expressed since the administration began. A second creditors' meeting is expected to be held in early September.
While the government's flight booking guarantee is not a bailout, it demonstrates their support for Rex and their commitment to ensuring the continuation of regional and rural services. Conversations between administrators and the government regarding potential support are ongoing.
Despite the challenges faced by Rex, the airline's regional services remain operational and vital to the communities they serve. The government's guarantee and the ongoing search for an investor offer hope for the future of Rex and the regional communities that rely on its services.