The Australian government says it is ready to assist REX (Regional Express Holdings) as it faces financial difficulties.
Transport Minister Catherine King stated the government has contingency plans for rural air services but no promise of bailout for Rex.
Rex has stopped selling tickets and is likely to appoint administrators, risking 2,000 jobs, raising concerns over aviation industry following the recent collapse of Bonza airlines.
The airline accused Qantas of engaging in “price gouging” on domestic routes and of “pillaging” its regional pilots, allegations which Qantas has dismissed.
A post on the REX website said: on Tuesday 30 July 2024 Regional Express Holdings Limited (Administrators Appointed) (ACN 099 547 270) and a number of its subsidiaries (ASX: REX) (the Rex Group) have entered voluntary administration. Samuel Freeman, Justin Walsh and Adam Nikitins of Ernst & Young Australia (EY Australia) have been appointed Joint and Several Administrators by the Rex Group’s respective Boards of Directors.
Transport Minister Catherine King said: “Rex is a pretty important part of the Australian aviation industry and (we) stand ready to work with them to see whether there’s any assistance or anything the government needs to do Aviation is a pretty tough business, and we’re seeing that. Obviously we saw that with Bonza folding. We don’t want to see Rex fold as well, so we’re keeping a fairly close eye on it.”
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