Australian airline Rex names administrator as finances sag

THE Australian regional airline Rex named an outside administrator on Wednesday to oversee its troubled finances and canceled all flights between major cities.

Australia’s third largest carrier said it has picked Ernst & Young Australia for help in this process called voluntary administration and would keep flying between Australia’s regional cities.

But the company said all flights between major cities - including Sydney, Perth and Melbourne - would be scrapped.

The regional airline, which started in 2002, has prioritised connecting remote areas of the country to capital cities with its 123 planes.

Like many airlines, Rex has struggled with supply chain challenges - including a global pilot shortage - for several months and reduced its routes before Wednesday’s announcement.

Virgin Australia has offered to assist Rex customers hit by flight cancellations, and the airlines are exploring the opportunity to support regional customers, the administrators said.

Prior to the announcement, Prime Minister Anthony Albanese said the government would consider possible proposals to save the airline.

“We want to see the aviation industry in Australia continue to be one that provides those services and that access” he said Tuesday.

He said Rex serviced many regional communities, particularly in areas that major airlines did not fly to.

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Australia’s domestic airline market is dominated by Qantas and Virgin Australia - together they a have 93.1 per cent market share - while Rex has five per cent, data from the national regulator shows.

Earlier this year, Australian budget airline Bonza was forced into liquidation and its 300-plus staff were told their employment would be terminated.

Bonza made a splash when it launched in January 2023, promising a down-to-earth Aussie experience with onboard craft beer, snags (sausages) and a relaxed approach to crew uniforms. AFP