Regional Express flights servicing the Mount Gambier Airport will continue at this stage, despite the airline entering voluntary administration.
Rex announced late on Tuesday that Regional Express Holdings Limited and a number of its subsidiaries had entered voluntary administration.
However, the airline reiterated that its Regional Saab 340 flights, including those which service Mount Gambier, were unaffected.
“Regional Saab 340 flights are currently unaffected by the administration and will continue to operate,” the airline said in a statement.
“Prepaid ticket holders will continue to have their tickets honoured by the Rex Group on regional routes.
“The Rex Group has a long and proud history of servicing regional and remote communities.”
However, the airline moved immediately to cancel flights between major airports, with the Rex Group’s domestic fleet of Boeing 737 aircraft all grounded.
“Affected customers are being contacted directly by Rex,” the statement said.
“Virgin Australia has made an offer for Rex customers with an existing ticket on a flight cancelled due to the Administration process the opportunity to transfer their ticket free of charge to the 13 overlapping Virgin Australia services.
“Rex and Virgin Australia are also exploring opportunities to support regional customers, which include Virgin Australia selling Rex’s regional services through codeshare or interline arrangements and making Velocity Frequent Flyer benefits available to Rex’s regional customers.”
The Grant District Council, which owns and operates the Mount Gambier airport, also assured residents it was keeping a close eye on the situation.
“As the owner and operator of the Mount Gambier Regional Airport, Grant District Council is monitoring the current situation closely,” chief executive Darryl Whicker said.
“Regional travel is critical for local communities and commerce, and council is committed to continuing work with all regular public transport operators to maintain air travel at the Mount Gambier Regional Airport for the benefit of these local communities and visitors.
“Rex Airlines flights departing and arriving at the Mount Gambier Regional Airport are currently not affected and continue to fly as normal.”
Much of the blame for the situation has fallen on Rex’s 2021 decision to enter the capital city flight market, expanding from its regional focus.
Earlier this week speculation swirled the airline was losing $1m a week, with the company halting share trading on Monday amid speculation about its future.
Following Tuesday night’s announcement Prime Minister Anthony Albanese told media Rex was “an important airline” and he was “very hopeful they’ll see their way through”.
“We want to see not just those jobs maintained, but we also want to see those communities continue to have access to aviation that’s so important for their economy and for their way of life,” he said on the ABC.
The Transport Workers Union says administrators of Rex Airlines expect up to 610 jobs to be axed in the wake of the decision.
Member for Barker Tony Pasin said regional communities like Mount Gambier and surrounds know first-hand the importance of regional airlines to connect travellers to Australia’s capital cities.
Mr Pasin said 2.5 million passengers per year use Rex Airlines.
“Most critically, Rex enables the seven million Australians living outside of capital cities to access the critical services that are unavailable locally. Many Limestone Coast residents rely on Rex to travel for lifesaving health treatment in Adelaide, “he said.
“Regional air services also bolster the economy of regional cities like Mount Gambier by providing affordable airfares for business and tourism travel.
“I applaud the decision to keep regional routes like Mount Gambier operational to ensure this vital connection is maintained, at least in the short term.
“If Rex were allowed to fail it would be catastrophic for the regional communities across Australia.”
