Catherine King MP, Minister for Infrastructure, Transport, Regional Development and Local Government, 23 January 2025
Albanese Government supports continued operation of Rex
The Albanese Government is ensuring Rex Airlines regional services will continue, supporting the administrators on next steps.
The Government will today acquire $50 million of debt from Rex’s largest creditor, PAGAC Regulus Holdings Limited (PAG), an important step to prevent an adverse outcome for regional communities, such as liquidation, and ensure the continued connectivity of Australia’s regional and remote communities.
By acquiring the debt, the Government will become the principal secured creditor and will seek to become a voting member of the Committee of Inspection.
Whilst the accelerated initial sale process undertaken by the Administrators in mid-2024 did not find a suitable buyer for the airlines’ regional operations, the Government continues to work closely with the Administrators through the extended convening period.
This makes clear the Government’s ongoing commitment to maintaining access to aviation services for regional and remote communities, and recognises the critical role of the Rex network to local economies.
This announcement builds on previous action, including the Albanese Government providing a commercial loan of up to $80 million to the Administrators to keep Rex’s vital regional routes operating, granting early access to former employees of Rex Airlines Ltd (the Boeing-737 business) to the Fair Entitlements Guarantee, and providing a guarantee in relation to regional ticket sales during the voluntary administration.
To date, the Employment and Workplace Relations Department has received 306 claims and processed 302 claims from former Rex (RAL) employees, with over $7.1 million already provided to Rex staff through FEG.
These actions preserve important economic, medical and freight services, supporting regional liveability and regional economies.
Media release – Australian Travel Industry Association, 23 January 2025
Continued operation of Rex key to future domestic aviation
The Federal Government’s acquisition of $50 million of Rex Airlines’ debt is an important measure to ensure the future of a competitive domestic airline sector in Australia.
QUOTES ATTRIBUTABLE TO THE AUSTRALIAN TRAVEL INDUSTRY ASSOCIATION (ATIA) CEO DEAN LONG:
“We welcome the announcement that the Federal Government has taken this step to become the principal secured creditor of Rex. It’s great news for travelling Australians, the communities who rely on Rex and for the health of the Australian Aviation sector. Rex is too important to be allowed to fail.”
“We need a third airline, and if Rex is allowed to fail, the reality is that even if another airline decides to enter this market, it will take so much longer for them to come into play. That’s a delay that would hit regional and rural Australia hard as well as the hip pocket of travellers.”
“Allowing the company to continue means there’s also an increased likelihood that our members, the travel businesses who are owed money as a result of having sold Rex tickets, are more likely to get at least some of their money back.”
“Currently, 98% of passengers across this country only have a choice of two airlines, and that’s not great, especially considering we already have the most concentrated air market in the world. Ensuring the future of a third airline in Australia means we have competition in the skies as well as access for regional and rural Australia.”
