The Australian Local Government Association (ALGA) has welcomed the Federal Government’s financial lifeline for Rex Airlines to maintain regional airline services and prevent its collapse.
The Government today announced it is prepared to acquire the airline – which entered voluntary administration last year – in the absence of any other buyers.
“When markets fail or struggle to deliver for regional communities, the government has a role to ensure people do not miss out on opportunities, education and critical connections,” said Transport Minister, Catherine King said in a statement.
“We are recognising that and stepping in to keep these routes in the air.”
ALGA President, Gladstone Regional Council Mayor, Matt Burnett said: “We thank the Government for their strong support to safeguard regional aviation services and protect local economies for regional and remote communities.
“These communities rely on consistent and reliable airline services to put food on tables, connect friends and family, and ensure access to vital healthcare services.
“In August last year, we called for strong and decisive action by the Government to ensure regional communities remain connected and accessible in the wake of the airline entering administration.
“We also jointly convened a crisis meeting with impacted local governments from regional areas and Federal Local Government Minister Kristy McBain.”
Mayor Burnett said many Councils play a crucial role in owning and operating airports and aerodromes that function as important gateways to local areas and regions.
“We look forward to continuing to work with the Government and councils to ensure there’s continued support for rural and regional communities as any disruption to airline access would be devastating,” he said.
