The federal government will acquire Rex Airlines if no buyer is found, ensuring regional aviation services continue beyond June, according to a statement released by Transport Minister Catherine King today.
Rex entered administration last July with over $500 million in debt, halting its jet services to major cities. Regional flights have continued with government support while administrators at EY seek a buyer.
The Government says it will work through a competitive sales process alongside EY. It also says it is not ‘a bidder’, though should a buyer fail to come out of the woodwork, Albanese Government will undertake necessary work, in consultation with relevant state governments, on contingency options, including preparations necessary for potential Commonwealth acquisition.
The Albanese government has provided an $80 million loan and became Rex’s largest creditor in January by taking over $50 million in debt from investor PAG Asia Capital to influence the administration process and prevent liquidation.
Prime Minister Anthony Albanese stressed the importance of maintaining regional connectivity.
“Regional Australians deserve access to quality and crucial regional aviation services. he said.
“We are working collaboratively with the administrators of Rex to ensure that regional services continue beyond June 2025, including looking at what support the Commonwealth can provide.
“Regional Australians can be assured that our Government will continue to fight to ensure these regional airfares remain available.”
Transport Minister Catherine King echoed the government’s commitment to regional communities, “When markets fail or struggle to deliver for regional communities, the government has a role to ensure people do not miss out on opportunities, education and critical connections,” she said.
To further support Rex, the government has waived the “use it or lose it” rule for its Sydney Airport slots until October 2026. Normally, airlines must use at least 80 per cent of their allocated takeoff and landing slots or lose them.
Meanwhile, the Australian Securities and Investments Commission (ASIC) is pursuing Rex’s former directors – Lim Kim Hai, John Sharp, Lincoln Pan, and Siddarth Khotkar – over allegations of deceptive and misleading conduct. ASIC claims they failed to inform investors of Rex’s financial struggles while stating the airline was on track to turn a profit in 2023. The case is set for the NSW Supreme Court in April.
ASIC to sue REX over allegations of deceptive and misleading conduct
