Three voluntary administrators have been appointed for the Rex Group, with a focus on ensuring Rex’s regional services continue through, and beyond, the administration period.

During this time, Rex will continue to service regional Australia through its Saab 340 fleet and Rex Flyers will continue to enjoy the normal benefits they receive under their membership tier.

They will also be able to continue to earn Rex Points as usual, including bonus point earn amounts for tiered members.

Rex has run with the tagline ‘our heart is in the country’ ever since its establishment after the collapse of Ansett Airways in 2002 and is often the only airline flying in and out of remote locations.

Dr Ian Douglas from UNSW Sydney’s School of Aviation says while Rex’s intercity flights have been grounded, the remote routes are still flying—which is important for the health care of many Australians. 

“If Rex completely fails then one of the consequences is that it puts remote medical care at risk,” Dr Douglas says. 

“Rex has an important role in keeping the country more connected, which helps us all thrive economically and socially.

“If Rex’s regional business doesn’t survive, there won’t just be a knock-on effect with higher ticket prices for consumers.

“There are many areas where Rex is the only airline operator. 

“Without them, access is cut to health and education services, as well as tourism and industry.”

 The news last month of Rex entering voluntary administration follows the collapse of budget carrier Bonza in April.

 And before that, domestic failures include Impulse, Tiger Air, Air Australia, Ozjet, two iterations of Compass—and the much larger Ansett Airways.

There is speculation that overseas private equity firm PAG could become the new owner of Rex. 

The firm had previously funded its expansion to cover the routes between capital cities.

 While the Federal government says it wants to make sure there is a stronger aviation sector by ensuring Rex continues to operate its regional routes, they have yet to commit to funding it. 

It is expected the Government’s Aviation White Paper will be released soon, setting long-term policies for the industry.

 Dr Douglas says the likelihood of Rex completely folding is low—he says he expects the airline will continue to operate its regional services.

 “Several state governments as well as the Federal government have indicated that it can’t be allowed it to fail,” he says. 

“They want and need to save the connectivity to the regions. Nobody is saying we should just let Rex die.”

The announcement by Rex Airlines also means that regional airports, which have made costly adjustments to accommodate new services through infrastructure upgrades, increased security measures and staffing could well be left stranded with empty departure gates.

“Supporting regional aviation should be a national priority, one that allows for equality of opportunity to be connected – regardless of where you live,” Federal Minister for Transport, Catherine King said.

This article appeared in  The Riverine Grazier, 14 August 2024.