‘We see a stronger, viable Rex in the future’ – administrator speaks out on airline plans

‘We see a stronger, viable Rex in the future’ – administrator speaks out on airline plans
Sofia Geraghty
By Sofia Geraghty


After making headlines last week after it entered voluntary administration, Rex has been noticeably quiet since.

Now – addressing calls for a government bailout – administrator Ernst & Young has said that, while government support for the airline is present, it might not be necessary.

“We’re doing a lot of modelling there to suggest that it’s a viable business into the future, it does need to be reshaped into that … but definitely we see a stronger, viable Rex into the future,” Sam Freeman – one of the three administrators appointed by E&Y said.

“But the government’s been pretty clear saying Rex is critical infrastructure for regional Australia and to the extent that support is needed, it’s likely to be there.”

Freeman hoped the administration would not last longer than five weeks, adding that the “full spectrum” of buyers had presented since that took over including businesses from within the aviation industry.

“There’s been considerable outreach to the administrators from parties in the industry interested in taking the regional business forward and we will be working with advisers to progress that in the coming weeks,” he said.

Rex Boeing 737-800

4450 creditors owed money

According to reports, Rex currently owes money to 4450 creditors, including more than 1000 employees.

In a Federal Court meeting on Friday, EY’s Daniel Krochmalik said the number of creditors was expected to increase as the process unfolded.

The airline currently owes money to the ATO, airports, governments and investor PAG Capital. The debt included $12 million to a large east coast airport and $150 million to PAG.

Nearly 200,000 customers who missed out on flights could also be added to the list of creditors.

Many customers were left without flights.

Hundreds of staff already chopped

Hundreds of Rex employees have already reportedly been axed since the airline went into administration.

One devastated air hostess took to Facebook to share the sad reality of the situation after she lost her job. In response to a post from a Rex customer complaining her flight had been cancelled Layla Rackley said: “I know this is so frustrating but the Rex staff, including myself, have lost our jobs very unexpectedly and we are all heartbroken.”

Unlike failed airline Bonza which only commenced operations in January 2023, Rex was a staple of the Australian aviation industry with roots reaching back to 1953 (when Hazelton Airlines was set up).

With two Australian airlines going down this year already (and we’re only in August) others have started to speculate that the issue is not with the airlines but rather with the aviation industry itself.

Travel Weekly take: Was Rex failure the result of a market duopoly or internal politics?

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

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