Australian Government Grants AUD $80 Million to Support Rex Airlines

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The Australian government has provided a financial lifeline to Rex Airlines, granting AUD $80 million (USD $52.3 million) to support its critical regional services amid an extension of the airline’s voluntary administration process. The funding, announced on November 12, 2024, by Minister for Transport Catherine King and Minister for Employment Murray Watt, will enable Rex Airlines to continue operating essential services for regional communities across Australia.

“This announcement underscores our commitment to ensuring continued regional aviation access and highlights the vital role Rex plays in connecting communities throughout Australia,” said Minister King.

The financial support is expected to help ease the request that administrators will submit to the court for an extension of the voluntary administration process until June 30, 2025. This extension is crucial for Rex Airlines to restructure and secure its long-term viability.

Samuel Freeman, administrator from Ernst & Young Australia (EY), expressed gratitude for the government’s support in a statement from Rex Airlines. “On behalf of the EY and Rex teams, as well as our customers and the communities we serve, I would like to thank Minister King for her strong support for regional Australia,” Freeman said. “This financing facility will allow us to continue supporting regional communities during this extended administration process.”

The funding will be used to implement a business improvement program aimed at securing the airline’s future. A key part of this plan includes expanding Rex’s operational fleet to improve reliability and capacity on regional routes. “We plan to increase the size of our operational fleet while also investing in strategic growth initiatives,” Freeman added. “This will provide greater clarity for the Rex team and enhance our ability to serve regional routes effectively.”

While Rex Airlines continues its voluntary administration process, the immediate priority is implementing the business improvement plan, with the sale of its regional network still ongoing. Additionally, it was confirmed that Rex had successfully completed the sale of its specialist aeromedical subsidiary, Pel-Air Aviation, to Helicorp Pty.

This financial support from the Australian government is a significant step in helping Rex Airlines stabilize its operations and ensure continued connectivity for Australia’s regional communities.

Related News : https://airguide.info/?s=Rex+Airlines

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