The Federal Government has today announced it will provide financing of up to $80 million to keep Rex’s regional routes running during an extension of the voluntary administration process.
Rex’s administration process is progressing, with the recent sale of Pel-Air Aviation Pty Limited to Helicorp Pty Ltd, part of Toll Aviation, with proceeds from the sale being used to repay secured creditors.
The Federal financing will support the business to continue offering critical services for regional communities, with Rex’s administrators intending to apply to the Federal Court of Australia to extend the Voluntary Administration to 30 June 2025, said Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King.
“The Government has also agreed to grant early access to former employees of Rex Airlines Pty Ltd (RAL), which operated the intercity jet services, to the Fair Entitlements Guarantee (FEG) while RAL is in voluntary administration. This will ensure that extending the Voluntary Administration period does not delay the ability of these employees to access their entitlements,” said Minister King.
In addition, Rex’s administrators and main secured creditor PAG have advised they will pay the entitlements of former employees of the regional business who have been made redundant during the Voluntary Administration period.
The Government will also continue to guarantee ticket sales made throughout the Voluntary Administration to 30 June 2025, should the Federal Court agree to the extension application. The guarantee has been effective so far, and has yet to be used with flight bookings holding up well, the Minister said.
“Today’s announcement is another demonstration of our commitment to maintaining regional aviation access, recognising the important role that Rex plays in regional communities right across Australia.”
“My department continues to meet regularly with the administrators as they work to implement a strategy for the regional aviation business.
“I encourage passengers to continue to support Rex’s regional operations,” she said.
