Prime Minister Anthony Albanese says embattled regional airline Rex will continue to have a future as the government works with administrators and bidders to find a long-term solution.
The leader also announced that if a suitable outcome is not reached through the private market, that there is potential for Commonwealth acquisition.
Rex Airlines entered voluntary administration last year after a failed attempt to add big city routes to its schedule.
The airline’s regional services have continued to operate after its fleet of Boeing 737 jets was grounded.
Labor says it will work with both administrators and any shortlisted bidders to ensure any potential buyer continues to provide stable and affordable services for regional and remote areas.
Commonwealth support will be offered conditionally based on the provision of such services.
The Australian government confirmed in a statement that it is not a current bidder, however, if a solution was not found on the private market, the Commonwealth could potentially step in.
“Regional Australians deserve access to quality and crucial regional aviation services,” Albanese said in a statement on Feb. 12.
“We are working collaboratively with the administrators of Rex to ensure that regional services continue beyond June 2025, including looking at what support the Commonwealth can provide.
“Regional Australians can be assured that our government will continue to fight to ensure these regional airfares remain available.”
The government has also worked to ensure slots are available for Rex at Sydney Airport, by waiving the “use it or lose it” condition placed on airlines in order to ensure flexibility.
Airline slots have long been a bugbear of the industry, with the government introducing the “use it or lose it” rule to stamp out concerns bigger airlines were booking slots they didn’t need in order to shut out competitors.
The government also provided a loan of $80 million (US$50 million) to help sustain regional routes, as well as acquiring $50 million of Rex’s debt.
“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,” Transport Minister Catherine King said.
The move to possibly nationalise the airline would make it the first to be owned by Australia since Qantas privatised in 1995.
The move has been welcomed by the Transport Workers’ Union.
“This announcement ... is a huge moment for the aviation industry,” national secretary Michael Kaine said.
“This is a vital step towards a future where aviation actually works for the people of this country, not its overpaid executives.”
