Government Extends $80 Million Financial Support to Help Regional Airline Rex Amid Challenges
Rex Airlines will remain operational on various remote and regional routes.
The federal Labor government has pledged $80 million (US$52 million) to assist struggling Rex Airlines in keeping its regional services operational.
Transport Minister Catherine King and Workplace Minister Murray Watt stated on Nov. 12 that this financial support is essential as the government works towards long-term solutions for the airline.
Rex entered voluntary administration in July due to financial challenges, including a debt of under $500 million.
Joint voluntary administrators Samuel Freeman, Justin Walsh, and Adam Nikitins from Ernst and Young Australia (EY Australia) have been appointed to seek assistance or a lifeline for Rex’s regional operations.
While Rex ventured into the competitive Sydney-Melbourne-Brisbane routes to compete with Qantas and Virgin, King announced in July that efforts were being made to preserve services in rural and remote areas.
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