Published July 30/31 in TheGuardian 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] unaffectedby
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…."