Federal Minster for Riverina Michael McCormack has released a statement regarding Regional Express’ (Rex) recent decision to enter voluntary administration and has called on Prime Minister Anthony Albanese to save the nation’s third largest airline.
Rex has assured regional routes will be maintained through its fleet of Saab 340s, its major passenger routes have been placed on hold, while the future of its cargo and freight holdings is still uncertain.
McCormack has pressed the importance of Rex in not only keeping regional communities connected, but in ensuring business opportunities continue to flourish in Australia’s regions.
“This is not about picking sides in the aviation space, this is about the imperative need for regional, rural and remote communities to have access to cost-effective, time-efficient and convenient transport options for business, health and leisure purposes,” McCormack says.
“Regional Express entering voluntary administration is extremely concerning, particularly for those who live and work in the regions,” Mr McCormack said.
“The Federal Government cannot turn a blind eye to this serious red flag being waved – it must look at all options available to ensure regional Australians are not short-changed when it comes to cost-effective, time-efficient and convenient transport options.
“The Prime Minister told me the Government would work to keep Rex flying, which I welcomed.
“I have also spoken at length with Aviation Minister Catherine King to discuss this crucial issue.”
McCormack held the posts of Deputy Premier and Minister for Infrastructure, Transport and Regional Development from 2018-2021.
Around 2000 staff were employed by Rex at the time of entering voluntary administration. Transport Workers’ Union Australia has cited 610 of those have already been lost.
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.
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