Rex Airline Problems

 Published July 30/31 in The Guardian https://www.theguardian.com/business/article/2024/jul/30/rex-airlines-federal-government

“Rex airlines enters voluntary administration with all flights between capital cities grounded”

“Federal government says Rex ‘will have a future’ with minister suggesting Labor will step in to save troubled company

Rex airlines enters voluntary administration with all flights between capital cities grounded

Federal government says Rex ‘will have a future’ with minister suggesting Labor will step in to save troubled company

All Rex flights between capital cities have been grounded and the airline has entered voluntary administration just hours after the Albanese government suggested it would intervene to ensure the nation’s third-largest carrier didn’t collapse.

Late on Tuesday, EY – formerly known as Ernst & Young – announced it had been appointed as administrators of the company, and that the airline’s Boeing 737 operations between capital cities such as Sydney, Melbourne and Brisbane had been grounded, with Virgin Australia stepping in to offer impacted passengers rebooking “free of charge”.

Rex’s regional operations with its Saab 340 turboprop planes remained [currently] unaffected by the administration and would continue to operate.

The administrators said Rex and Virgin Australia were also exploring opportunities to support regional customers, including by having Virgin Australia sell Rex’s regional services through codeshare or interline arrangements, and making Velocity Frequent Flyer benefits available to Rex’s regional customers.

…Rural mayors across Australia whose communities rely on Rex for connectivity warned of further isolation if the carrier went under, while leaders of larger regional centres feared airfare price hikes from Qantas if the routes were left without competition.

…On Monday [29 July] , the Australian stock exchange announced it had suspended trade in Rex’s shares at the airline’s request “pending it releasing an announcement”.

Rex was initially called Regional Express following its formation after the death of Ansett. Rex has mostly been a regional carrier, operating 36-seater Saab 340 turboprop aircraft.

…Rex has also confronted a shortage of parts to repair its ageing fleet of Saab 340 aircraft for its core regional operations, which have also been hampered by a shortage of pilots for the smaller planes…."