Travelers are encouraged to continue booking flights with Rex.
The administrators of regional airline Rex are urging hesitant travelers to continue booking flights despite concerns about the company’s financial stability.
The administrators overseeing the five companies in the Rex Group are encouraging travelers to support the airline despite its uncertain financial situation.
Recent reports indicate that Rex is facing approximately $500 million in debt, prompting administrators to initiate an asset sale and search for potential buyers to sustain its operations.
Following a shift in focus to capital city routes in competition with major airlines like Qantas and Virgin, Rex reported a net loss of $3.2 million for the first half of the 2023/24 financial year in February 2023.
Issues such as a pilot shortage, supply chain disruptions, and maintenance problems led to the grounding of its Boeing 737 fleet in July when the company entered administration. However, regional flights continue using its Saab 340 aircraft.
Despite these challenges, Rex has successfully transported over 20,000 passengers on 600 flights since then.
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According to EY, Rex’s regional flights are sustained by funding from PAG Asia Capital, while discussions about a federal government bailout continue for the long-term sustainability of the airline.
Reassuring travelers, EY partner Samuel Freeman emphasized that booking with Rex under the administration’s guidance is safe and secure.
Despite the challenges, Rex has shown its commitment to providing essential travel services, with ongoing support to facilitate its operations during the administration phase.
In discussions with government representatives in Canberra, Rex aims to prioritize regional flights to secure their support for the airline’s future.
Concerns over Jobs
Not only are approximately 1,000 jobs at risk—600 were lost during the administration announcement—but the continuity of vital regional transport links is also in jeopardy.
Freeman remains optimistic that the airline’s value can be maximized through a potential sale, with a focus on resolving employee entitlements through the process.
Advocating for the protection of remaining jobs and regional connections, the Transport Workers Union calls for government intervention to secure Rex’s future.
