REX Airlines Collapses, Future in Doubt

ASX announcement – Ernst and Young, 31 July 2024

REGIONAL EXPRESS HOLDINGS LIMITED ENTERS VOLUNTARY ADMINISTRATION

Regional Express Holdings Limited (ACN 099 547 270) and a number of its subsidiaries (ASX: REX) (the Rex Group) have entered voluntary administration. The wholly owned subsidiaries which are affected by the administration are detailed in the enclosed schedule.

Samuel Freeman, Justin Walsh and Adam Nikitins of Ernst & Young Australia (EY Australia) have been appointed Joint and Several Voluntary Administrators by the Rex Group’s respective Boards of Directors.

Regional Saab 340 flights unaffected

Regional Saab 340 flights are currently unaffected by the administration and will continue to operate. Prepaid ticket holders will continue to have their tickets honoured by the Rex Group on regional routes.

The Rex Group has a long and proud history of servicing regional and remote communities across Australia.

Domestic 737 services grounded with Virgin Australia offering impacted Rex passengers free of
charge rebooking

Flights between major airports have been cancelled, with the Rex Group’s domestic fleet of Boeing 737 aircraft all grounded. Affected customers are being contacted directly by Rex.

Virgin Australia has made an offer for Rex customers with an existing ticket on a flight cancelled due to the Administration process the opportunity to transfer their ticket free of charge to the 13 overlapping Virgin Australia services listed below. Eligible Rex customers who wish to take up Virgin Australia’s rebooking offer, must contact the Virgin Australia Guest Contact Centre on 13 67 89 or visit
www.virginaustralia.com by Wednesday 14 August 2024.

Eligible customers will be re-accommodated on Virgin Australia flights as close as practicable to their original time of travel. Holders of affected tickets should not come to the airport until they have rebooked their flights.

Rex and Virgin Australia are also exploring opportunities to support regional customers, which include Virgin Australia selling Rex’s regional services through codeshare or interline arrangements, and making Velocity Frequent Flyer benefits available to Rex’s regional customers.

The Administrators would like to thank Virgin Australia on behalf of impacted Rex customers and regional communities for its support during this difficult time.

This announcement has been authorised by the Joint and Several Voluntary Administrators of the Rex Group.

List of entities in administration

Regional Express Holdings Limited (ACN 099 547 270)
Regional Express Pty Limited (ACN 101 325 642)
Rex Airlines Pty Ltd (ACN 642 400 048)
Rex Investment Holdings Pty Limited (ACN 101 317 677)
Air Partners Pty Ltd ACN (065 221 356)
(all Administrators Appointed)
(collectively, “the Rex Group”)

Domestic routes being accommodated by Virgin Australia

Melbourne (MEL) – Adelaide (ADL)
Melbourne (MEL) – Canberra (CBR)
Melbourne (MEL) – Brisbane (BNE)
Melbourne (MEL) – Coolangatta, Gold Coast (OOL)
Melbourne (MEL) – Hobart (HBA)
Melbourne (MEL) – Sydney (SYD)
Melbourne (MEL) – Perth (PER)
Sydney (SYD) – Brisbane (BNE)
Sydney (SYD) – Coolangatta, Gold Coast (OOL)
Sydney (SYD – Adelaide (ADL)
Brisbane (BNE) – Adelaide (ADL)
Adelaide (ADL) – Perth (PER)
Brisbane (BNE) – Cairns (CNS)

Media Contacts:
Luke Starr
+61 419 446 879
[email protected]
Shane Allison
+61 402 219 963
[email protected]

Other Contacts:
Rex passengers: [email protected]
Rex creditors: [email protected]
Rex suppliers: [email protected]
Rex employees: [email protected]
Media enquiries: [email protected]

Media release – Jeremy Rockliff, Premier, 31 July 2024

Statement on REX Airlines

The Tasmanian Government is absolutely committed to ensuring our regional and rural communities continue to grow and prosper, and that our visitor economy remains strong.

A critical part of this is maintaining aviation capacity into, and across our state.

Many of our regional and remote communities and our Tasmanian businesses rely on our airlines to deliver essential products and services, connect them to other areas of Tasmania and the mainland and provide freight, mail and logistics.

These aviation services are also important to our tourism and hospitality industries which inject around $3.5 billion in visitor spending into the Tasmanian economy.

That’s why I am concerned that Rex Airlines has announced that it has entered Voluntary Administration.

Rex Airlines plays an important role in our regional communities, particularly King Island, and we absolutely stand ready to work with the Commonwealth Government on a pathway forward.

This morning, I contacted the Prime Minister to stress how important Rex’s regional services are to Tasmania, particularly the north west coast and King Island.

Firstly, I welcomed his openness to exploring options to support regional routes. This is appreciated.

I have made it clear that we can’t afford for our regional services to stop as the social and economic impact would be significant.

The Minister for Transport, Minister Abetz has also written to his federal counterpart Catherine King to highlight the situation for Tasmania.

The Department of State Growth is also working with the King Island Council and shipping and freight companies to ensure that the Island has adequate supplies and services.

I have spoken to the Mayors of King Island, Burnie and Devonport, and will continue to do so as the situation unfolds.

I will also keep in regular contact with key stakeholders in Devonport and Burnie.

I am advised that regional services, including to King Island, have not currently been impacted but flights to Hobart have been cancelled.

I will continue to be briefed on the situation as it unfolds and will update the community as new information becomes available.

I remain hopeful of a positive outcome for our regional communities, and I will continue to work with the Commonwealth Government on a pathway forward.

Media release – Nick McKim, Greens Senator for Tasmania, 31 July, 2024

Rex too important to Tasmania to be allowed to fail

The Greens are calling on the federal government to consider purchasing Rex Airlines to ensure the continued connectivity and economic stability of regional Australia.

“The collapse of Rex Airlines would be a devastating blow to Tasmania’s regional communities and our tourism industry,” Greens Senator for Tasmania Nick McKim said.

“Rex is too important to Tasmania to be allowed to fail.”

“We cannot afford to lose such a vital service that supports local economies, jobs, and regional connectivity.”

“The federal government must step up and investigate the possibility of buying Rex Airlines to keep it operational.”

“This move would safeguard essential transport links and prevent further economic disruption.”

“This is about more than just keeping planes in the sky. It’s about preserving jobs, supporting tourism, and maintaining the vital connections that keep our regional areas thriving.”

“Federal Labor MPs and Senators need to step up and make sure the Prime Minister understands how critical Rex is to Tasmania.”

Media release – Anita Dow MP, Deputy Labor Leader, Shadow Minister for Industry & Regional Development, 31 July 2024

Statement on Rex Airlines

Labor understands the uncertainty around the future of Rex Airlines is incredibly concerning, particularly for regional Tasmanians and key industries and businesses.

Our thoughts are also with the hundreds of workers across the country, whose jobs are at risk and are facing uncertainty.

We welcome the Federal Government’s commitment to work with Rex Airlines to continue services for regional Tasmania.

We also welcome the Premier’s commitment to work with community leaders and the Federal Government on a path forward.

Labor has spoken with locally affected Mayors and stakeholders, and we will continue to provide advocacy on the importance of Rex Airlines’ services to our community and the economy, including to the Federal Government.

Rex Airlines provides a highly valued and essential service into Burnie, Devonport and King Island, and cessation of these services would have an adverse effect on competition, essential passenger, and freight services, and choice for tourists and locals.

Any change to air services will have a negative impact on the region’s economy.

At a time when our economy is in decline, and the new Spirits vessels are yet to arrive, we need to maintain the status quo of air access into the region, but also drive opportunities for growth so that businesses and communities can reap the benefits.

Labor will always stand up for our regional communities and the services they deserve.

Media release – Australian Travel Industry Association (ATIA), 31 July 2024

ATIA calls for Federal Government support for travel ecosystem amid Rex Airlines administration

The Australian Travel Industry Association (ATIA) is calling on the Federal Government to ensure that any support package for Rex Airlines includes compensation for the wider travel ecosystem.

Many Travel Agents, in particular, are currently out of pocket with significant amounts outstanding and owed by Rex Airlines. These travel professionals are now also doing all they can to support those travelling Australians impacted by Rex entering voluntary administration.

ATIA has formally written to Federal Transport Minister the Hon Catherine King, seeking financial support for its members affected by this development, both financially and in terms of additional work supporting Australian consumers who have Rex bookings.

QUOTES ATTRIBUTABLE TO ATIA CEO DEAN LONG (AVAILABLE FOR INTERVIEW):

“Given the current situation, we urge the Federal Government to extend any financial support beyond the airline itself to include the wider travel ecosystem, which is now picking up the pieces. Many Travel agents have been left with substantial outstanding amounts as a result of booking with Rex Airlines for clients. On top of the financial exposure is the significant increase in workload as they work to help those who have now found themselves stuck and those who have booked with Rex for future travel.”

“Financial assistance is crucial to help travel businesses manage this difficult period, and we are hopeful the Federal Government will understand that. We had a very productive meeting with Transport Minister Catherine King earlier this week, and she understands how the Travel eco-system works.”

“Ensuring that those travel agents impacted are supported is essential given the circumstances, and also important for maintaining the integrity and competitiveness of the Australian travel industry. We look forward to the government’s prompt response to our call for action.”

“Rex Airlines has been a lifeline for much of regional and rural Australia, ensuring these communities stay connected to the rest of the country. Rex’s entry into administration is a significant blow not just for these areas but also for the competitive landscape of Australian aviation. We remain hopeful that Rex is able to navigate this challenging period and emerge to trade again. In the meantime, your travel professional is doing everything they can to work through your options.”

“ATIA remains committed to supporting its members through these challenging times and will continue to advocate for measures that safeguard the interests of the travel industry.”

Media release – Qantas, 31 July 2024

QANTAS GROUP STATEMENT ON REX

This is a challenging day for our industry and we are sad to see Rex enter voluntary administration with the immediate suspension of its Boeing 737 operations.

We know this will be a difficult period for many Rex customers and employees and we stand ready to assist.
If Rex employees would like to discuss opportunities within Qantas or Jetstar, particularly in specialised fields which are unique to aviation, we’ve set up a dedicated link on our careers website.

Employees can express their interest by applying here and completing the questionnaire, in addition to attaching their current resume.

Rex customers impacted by cancelled flights due to the grounding of their domestic jet services can contact Qantas and Jetstar to be reaccommodated on the same route as their original booking at no charge, where we have seats available.

Customers with an impacted Rex booking can contact Jetstar on Live Chat or 13 15 38 and Qantas on 13 13 13 to make a booking. They have until 31 August 2024 to take up the offer.

The overlapping routes are: