Home » News » ATIA calls on a Federal Government support package amid Rex collapse

31 July, 2024

ATIA calls on a Federal Government support package amid Rex collapse

Edited by Travel Weekly

The Australian Travel Industry Association has called on a Federal Government support package after Rex Airlines called in administrators, shutting down the airline.

Travel agents, in particular, are currently out of pocket with significant amounts outstanding and owed by Rex Airlines, ATIA said. These travel professionals are now also doing all they can to support those travelling Australians impacted by Rex entering voluntary administration.

Senior lecturer in Tourism, Hospitality and Event Management, at La Trobe Business School, Dr Paul Strickland, made a similar call for Federal Government support.

ATIA has formally written to Federal Transport Minister the Hon Catherine King, seeking financial support for its members affected by this development, both financially and in terms of additional work supporting Australian consumers who have Rex bookings.

“Given the current situation, we urge the Federal Government to extend any financial support beyond the airline itself to include the wider travel ecosystem, which is now picking up the pieces,” ATIA CEO Dean Long said.

“Many travel agents have been left with substantial outstanding amounts as a result of booking with Rex Airlines for clients. On top of the financial exposure is the significant increase in workload as they work to help those who have now found themselves stuck and those who have booked with Rex for future travel.

“Financial assistance is crucial to help travel businesses manage this difficult period, and we are hopeful the Federal Government will understand that. We had a very productive meeting with Transport Minister Catherine King earlier this week, and she understands how the Travel eco-system works.”

“Ensuring that those travel agents impacted are supported is essential given the circumstances, and also important for maintaining the integrity and competitiveness of the Australian travel industry. We look forward to the government’s prompt response to our call for action,” Long said.

“Rex Airlines has been a lifeline for much of regional and rural Australia, ensuring these communities stay connected to the rest of the country. Rex’s entry into administration is a significant blow not just for these areas but also for the competitive landscape of Australian aviation. We remain hopeful that Rex is able to navigate this challenging period and emerge to trade again. In the meantime, your travel professional is doing everything they can to work through your options.

“ATIA remains committed to supporting its members through these challenging times and will continue to advocate for measures that safeguard the interests of the travel industry.”

Dr Strickland said the impact will be felt by regional communities, reduced airline competition will increase prices and result in airlines such as Virgin will capitalise on Rex’s cancelled routes. Access to hospitals in major cities will also become challenging for locals in regional and rural locations, he said.

“The impact of the cost of living is taking its toll on companies which have little margins such as Bonza and Rex. Aviation fuel, plane maintenance and the cost of daily operations are all increasing, putting pressure on an industry that is still struggling after the COVID-19 pandemic. Simply charging a higher ticket price is not the solution long term,” Dr Strickland said.

“It is the Federal Government’s responsibility to ensure essential services to regional communities but that does not necessarily extend to the aviation industry. Support packages are welcomed but not a long-term solution. The only way the aviation sector can guarantee services is if the government owns a controlling share of the airline.”

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Email the Travel Weekly team at traveldesk@travelweekly.com.au

ATIA Rex airlines