Australian regional carrier Rex appears to be in trouble, according to media reports in Australia and elsewhere. The news followed a halt in the trading of the airline’s shares. Rex, Australia’s third-largest airline, is said to be closed to appointing EY – formerly known as Ernst & Young – as administrators, according to a Bloomberg News report.
Rex’s website was not taking bookings for its jet services between capital cities such as Sydney, Melbourne and Brisbane. Regional services could still be booked.
Rex and EY could not be reached for comment.
The airline entered a trading halt on Monday. The news follows the recent collapse of budget carrier Bonza in a market dominated by the Qantas and Virgin duopoly. Rex is the only air link provider for many regional towns and its fares on capital city routes have been competitive with the major players.
When asked whether the government is prepared to bail out Rex Airlines amid reports the carrier has appointed administrators, Prime Minister Anthony Albanese told reporters today that it would “examine any proposals”, according to The Capital Brief website. “Rex receives substantial government support with no conditions attached,” he added. “Rex, as a regional airline, of course, provides important links with regional communities — and particularly between capital cities and regional communities — it is important for those local economies.”
Transport Minister Catherine King, meanwhile, told ABC News Breakfast the government was keeping an eye on an announcement from the airline expected tomorrow. “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.
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