The Australian government plans to acquire Regional Express Holdings (Rex) if no alternative buyer is found following the carrier’s filing for voluntary administration in July 2024.
Prime Minister Anthony Albanese stated that ensuring scheduled passenger flights to regional and remote towns is a priority, especially after the government infused AUD130m (approximately USD81.5m ) to keep operations running.
Despite efforts from Ernst & Young to find a buyer for Rex’s regional operations, challenges persist, including the average age of the 57 Saab 340B aircraft, which is 31.3 years, requiring replacement.
The government’s support for any potential buyer will depend on their commitments to maintaining reasonable air services for regional communities, ensuring value for taxpayers, and adhering to good governance practices, especially as Australia approaches a federal election by the end of May.
