The Australian Airports Association (AAA) has welcomed the announcement from administrators that a sale agreement has been reached for Rex Airlines.
“This is a significant development for regional aviation and provides much-needed certainty for communities that rely on essential air services,” AAA CEO Simon Westaway said.
Rex Airlines was thrown a lifeline after administrators E&Y found a US buyer for the collapsed carrier, 15 months after it entered voluntary administration.
Nasdaq-listed US aviation company Air T has agreed to acquire Rex, which collapsed in 2024, and terms of the agreement could be released as early as this week.
“Reliable air connectivity is vital to the social and economic wellbeing of regional Australia. This outcome helps safeguard access to those services,” AAA’s Westaway said
“We await further detail on how the transition will be managed and look forward to engaging constructively with government and industry to support a smooth and sustainable path forward.
“We urge the incoming owners to maintain service standards, protect regional routes, and ensure fair treatment of regional airports and the communities they serve.
“Many regional airports are under financial pressure, and we call for renewed focus on sustainable funding models that ensure critical aviation infrastructure can continue to serve regional communities effectively.”
David Anderson, CEO at Big Red Group, which powers ANZ’s largest experience operator network, believes efforts should now be directed to ensuring Rex remains in the air.
“The potential acquisition of Rex Airlines by Air T is a welcome lifeline and major win for regional connectivity across Australia – particularly after a prolonged period of uncertainty,” Anderson said. “The sale will undoubtedly have a positive impact on the country’s hard-working regional operators who depend on reliable and affordable air services to bring in visitors.”
“However, the real work starts now. While an acquisition addresses questions of service continuity, focus must now shift to ensuring the airline remains in the air. We’ve seen this story before – a domestic airline falters, prices skyrocket, and capacity is drastically reduced, which creates a ripple effect for regional tourism operators and deters visitors from destinations that rely on tourism dollars. We need to ensure Rex Airlines has a different ending.
“For the tourism and experiences industry, a stable and reasonably priced regional operator is essential for driving growth into the areas that need it most. Connectivity for harder to reach Australian destinations is crucial and we urge the new owners to prioritise safe-guarding regional routes and maintain prices that offer regional operators a level playing field that helps give them a fair go within a highly competitive market.
“A stable Rex Airlines isn’t just good for aviation – it’s vital for tourism dispersal, local economies and the future of Australian travel and will hopefully encourage Aussies and international travellers alike to finally move beyond the eastern seaboard.”
In the meantime, the company that manages the Rex Flyer program has been placed into voluntary administration, leading to a temporary suspension of points accrual. On Tuesday 30 July 2024 Regional Express Holdings Limited entered voluntary administration and, in the period following, Rex Flyers were able to continue to earn Rex Points, including bonus point earn amounts for tiered members.
The carrier had posted that Rex points would be redeemable in the event of a successful restructure of Rex that specifically sought to maintain those points.
“The administrators are assessing next steps and intend to issue a further update to Rex Flyer members as soon as practicable,” EY said.
