Fears are growing over the future of Rex Airlines, Australia’s third-largest airline, following the recent collapse of Bonza. Australian Prime Minister Anthony Albanese has expressed concern about Rex’s decision to move away from its regional-only model and expand into the country’s “Golden Triangle.” The federal Labor government is closely monitoring the situation and has called for a trading halt on the ASX 200 for Rex. Albanese acknowledges the importance of Rex as a regional airline and the vital links it provides between capital cities and regional communities. However, he voiced concerns about Rex diverting from its traditional role, such as offering flights from Sydney to Melbourne, one of the top 10 routes in the world.
Transport Minister Catherine King also emphasized the significance of Rex in the Australian aviation industry and stated that the government is ready to assist and provide support if needed. Regional aviation plays a crucial role in Australia, but it is a challenging business, as seen with the recent folding of Bonza. Both King and Albanese expressed their commitment to working with Rex to preserve jobs and ensure the continuation of remote flight routes that are otherwise lacking in services.
Rex has been recognized for its customer service and excellence, winning the Skytrax World Airline Awards for the best regional airline in Australia and the Pacific in 2023 and 2024. The airline has been operating flights between major cities like Sydney, Melbourne, Brisbane, Perth, and regional and country towns. In an effort to attract customers, Rex recently launched a social media campaign promoting airfares starting from $69.
To address its financial challenges, Rex has reportedly enlisted the help of consulting firm Deloitte, which is tasked with assisting the airline in turning its fortunes around. However, Deloitte declined to comment on their involvement when contacted by The Epoch Times, redirecting inquiries back to Rex.
Experts from the University of New South Wales, Ian Douglas, and Seena Sarram, analyzed the struggles faced by Australian budget airlines, highlighting issues with population density, especially in regional areas, and difficulties with airport access. These factors contribute to the operational difficulties experienced by budget airlines like Rex.
A statement from Rex is expected to be released on July 31, shedding further light on the airline’s plans and addressing concerns about its future. The government, along with industry experts and consultants, will continue to closely monitor the situation to ensure the viability and sustainability of Rex Airlines.
