Australian Prime Minister Anthony Albanese has expressed concern about Rex Airline’s 2021 decision to move away from its regional-only model to provide flights in the country’s “Golden Triangle.”
His comments come as the federal Labor government keeps a close eye on the developments surrounding Australia’s third-largest airline, which called for a trading halt on the ASX 200 on July 29.
“We are concerned about Rex. It’s an important regional airline. What we will do, though, is examine any proposals,” Albanese told reporters, adding the company already received “substantial government support” with no strings attached.
“One of the things that I expressed concern about ... [was Rex moving away] from their traditional role of being a regional airline into flights, for example, from Sydney to Melbourne. Sydney to Melbourne has been, always, in the top 10 routes in the world,” he said.
“Rex, as a regional airline provides important links with regional communities–and particularly between capital cities and regional communities–it is important for those local economies.”
Rex Airlines was running flights between Sydney, Melbourne, Brisbane, Perth, and regional and country towns.
Australia’s transport minister, Catherine King, spoke to ABC News Breakfast on July 30. She said the government was keeping a close eye on what might happen next.
“You know, we think Rex is a pretty important part of the Australian aviation industry and stand ready to work with them to see whether there’s any assistance or anything the government needs to do,” she said.
In 2023 and 2024, the Skytrax World Airline Awards named Rex the best regional airline for customer service and excellence in Australia and the Pacific.
Ms. King said regional aviation was essential to Australia but recognised it was a “tough business.”
“Obviously we saw that with Bonza folding,” she said.
“We don’t want to see Rex fold, either, so we’re keeping a fairly close eye on it.
“But that’s what we know at this stage, and services are continuing.”
Ms. King’s sentiments were echoed by the prime minister, who told ABC that the government was aware of Rex’s importance to regional Australia.
Mr. Albanese vowed to work with the airline to maintain jobs with the company and remote flight routes that would otherwise be lacking in services.
Earlier in the month, Rex took to social media to promote its airfares from $69 (US$45). Last month, the airline announced two new routes: Perth to Melbourne and Perth to Adelaide.
The Epoch Times contacted Deloitte, a consulting firm Rex has reportedly enlisted to help turn the company around from years of weak profits. Deloitte referred The Epoch Times back to Rex.
In a previous statement of analysis in the wake of rival airline Bonza’s collapse, University of New South Wales experts Ian Douglas and Seena Sarram explained that Australian budget airlines often struggled to maintain operations.
Their report revealed their struggles stemmed from a lack of population density (especially in regional areas), and difficulties with airport access.
A statement is expected to be made by the company on July 31.
