The federal government has announced it will provide financing of up to $80 million to keep the regional routes of Rex Airlines running during its extension of the voluntary administration process.
The financing will support Rex Airlines in continuing offering critical services for regional communities, with the company’s administrators intending to apply to the Federal Court of Australia to extend the voluntary administration to June 30, 2025.
The announcement comes soon after the confirmed sale of Pel-Air, a ring fenced air ambulance subsidiary of Rex Group, to Toll Group subsidiary Helicorp, with proceeds from the sale being used to repay secured creditors.
Should the Federal Court agree to the voluntary administration extension application, the government will continue to guarantee ticket sales with the airline to the extended date.
In addition to the funding, it has also been announced Rex’s administrators and main secured creditor PAG will pay the entitlements of former employees of the business who have been made redundant during the voluntary administration period.
Transport Workers’ Union (TWU) Assistant Secretary Emily McMillan says the announcement is a positive step for regional Australia retaining its connectivity to the rest of the country.
“In October polling showed there is overwhelming support in Australia for the federal government to intervene and keep Rex flying,” McMillan says.
“This is a positive announcement for the redundant workers whose entitlements have been in limbo, as well as for regional Australia’s business, tourism, healthcare and community services.
“There are hundreds of jobs still on the line and there is a clear mandate here for the government to step in and safeguard critical aviation routes and protect those jobs by taking a stake in the airline.
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