Rex Airlines given $52 million lifeline to ‘support critical regional services’
The Australian government has given Rex Airlines AUD $80 million ($52.3 million) to support critical regional services during an extension of the voluntary administration process.
The Minister for Transport, Catherine King, and the Minister for Employment, Murray Watt, announced on November 12, 2024, that the financial lifeline will allow Rex Airlines to continue providing services for regional communities.
“Today’s announcement is another demonstration of our commitment to maintaining regional aviation access, recognizing the important role that Rex plays in regional communities right across Australia,” King said.
The funding should help ease a request that administrators plan to make to the court for an extension of the voluntary administration through to June 30, 2025.
In a statement issued by Rex Airlines, Ernst & Young Australia (EY Australia) administrator, Samuel Freeman, thanked the Australian government for its support.
“On behalf of the EY and Rex teams, our customers and the communities Rex serves, I’d like to thank Minister King for her strong support for regional Australia,” Freeman said. “This Australian Government financing facility will enable us to continue to support regional communities through an extension of the voluntary administration.”
The rescue package will be used to invest in a business improvement program to secure the airline’s future and increase the number of operational aircraft.
“We’re planning to increase the size of the operational fleet, while providing greater clarity for the Rex team and investing in strategic growth initiatives. Through this plan, we’re looking to increase reliability and capacity on the regional routes,” Freeman added.
The Administrators said that while the sale of the regional network process will continue during the extension, the immediate focus is implementing the business improvement plan.
It was also confirmed that Rex had secured the sale of its specialist aeromedical subsidiary, Pel-Air Aviation to Helicorp Pty.
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The Australian government has given Rex Airlines AUD $80 million ($52.3 million) to support critical regional services during…
The post Rex Airlines given $52 million lifeline to ‘support critical regional services’ appeared first on AeroTime.
