The Federal Government has committed to supporting critical regional aviation services, today announcing it will provide financing of up to $80m to keep Rex’s regional routes running during an extension of the voluntary administration process, as well as granting early access to entitlements for former employees of the business.
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 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.
The government has 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.
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 June 30, 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.
Federal Transport Minister Catherine King said today’s announcement was “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,” she said.
“I encourage passengers to continue to support Rex’s regional operations.”
