Australia Guarantees Rex Flights on Regional Routes Amid Administration

Australia's government will support Regional Express Holdings (Rex) by guaranteeing flights for booked passengers on regional routes during its voluntary administration process. This move aims to maintain essential travel between remote communities, following the airline's recent financial troubles and job cuts.

In a move aimed at safeguarding regional connectivity, Australia's government will guarantee flights booked on Regional Express Holdings (Rex) for passengers on regional routes, but not between state capitals, as stated by the transport minister on Thursday. The announcement follows Rex entering administration and slashing hundreds of jobs.

Rex, renowned for servicing Australia's expansive regional areas with small aircraft, appointed administrators last month, marking it as the second airline in Australia to face such a situation this year. Transport Minister Catherine King assured that the government will ensure passengers with regional flight bookings on Rex will either travel or be refunded, throughout the airline's voluntary administration proceedings.

King emphasized that Rex's continuation is pivotal for Australia, highlighting the government's close collaboration with administrators to secure a stable future for regional aviation. The airline operates on 41 routes, catering to regional and remote communities, including 21 routes exclusively serviced by Rex.

However, larger jet flights in the lucrative "golden triangle" – Sydney, Brisbane, and Melbourne – will not receive government guarantees. The recent collapse of Rex, shortly after budget airline Bonza shut down three months ago, draws attention to the challenges faced by smaller airlines in Australia's vast and heavily concentrated market, currently dominated by Qantas and Virgin Australia.

(With inputs from agencies.)