Rex Airlines, the parent company of Rex Airlines, has recently entered into voluntary administration, resulting in the grounding of all flights between major airports. However, the regional Saab 340 flights operated by the airline will remain unaffected and continue to operate. This decision was made by Regional Express Holdings Limited, who appointed joint and several voluntary administrators from Ernst and Young Australia.
Unfortunately, this move into voluntary administration is predicted to lead to job losses, with the Transport Workers Union estimating that as many as 850 jobs could be affected. The grounding of the airline’s fleet of Boeing 737s, which are used for major city routes, has led to Virgin Australia stepping in to offer free rebooking to affected customers. Virgin Australia has stated that eligible customers will be re-accommodated on their flights as close as possible to their original travel time.
In an effort to safeguard regional flights, Rex and Virgin Australia are exploring opportunities for collaboration. This includes discussing arrangements such as codeshare or interline agreements, as well as making Velocity Frequent Flyer benefits available to Rex’s regional customers. The administrators of Rex Airlines have expressed their gratitude to Virgin Australia for their support during this challenging time.
The decision to enter voluntary administration by Rex Airlines follows their withdrawal from the ASX, prompting concern from Prime Minister Anthony Albanese and Transport Minister Catherine King. Both politicians have expressed their worries about the future of the nation’s third-largest airline and have stated that they will examine any proposals put forward. Albanese highlighted the importance of Rex as a regional airline and its role in connecting capital cities with regional communities, emphasizing the impact on local economies.
Transport Minister Catherine King has also indicated that the government is closely monitoring the situation and is ready to assist Rex if necessary. She acknowledged Rex’s significance in the Australian aviation industry and expressed a willingness to work with the company.
This recent development follows the collapse of Bonza, another regional-to-city airline, in June. The aviation industry is facing significant challenges due to the ongoing COVID-19 pandemic, with many airlines struggling to stay afloat.
Passengers who need to switch their flights to Virgin Australia can do so by contacting the airline’s customer service or visiting their website. The deadline for rebooking is August 14, 2024.
Overall, the entry into voluntary administration by Rex Airlines has raised concerns about the future of the airline and the impact it will have on both employees and regional communities. The collaboration with Virgin Australia provides some hope for the continuation of regional flights, but the aviation industry as a whole is facing unprecedented challenges that will require innovative solutions and government support to overcome.
