iscover
Rex looks to have pulled Boeing 737 bookings from its website as speculation mounts that administrators will be called in.
Australian Aviation has verified that domestic bookings past 30 July appear to be unavailable, while tickets for regional flights served by the airline’s Saab 340 fleet are still on sale. The Australian Financial Review has reported Ernst & Young (EY) is likely to be appointed as an administrator.
This content is available exclusively to Australian Aviation members.
A monthly membership is only $5.99 or save with our annual plans.
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
According to the Financial Review, sources speaking on condition of anonymity said the airline is working with EY, which is also the voluntary liquidator for the collapsed Air Vanuatu.
The Sydney Morning Herald has reported that EY could be announced as administrators as early as Wednesday, when Rex’s trading halt is set to expire.
Lawyers for accountants Deloitte, who were reportedly called in to examine the airline’s finances, have said in a letter that Deloitte would not seek to be appointed in any potential voluntary administration.
“Our clients are not seeking to be appointed voluntary administrators of REX … nor will they consent to such an appointment. Any suggestion that our clients are seeking to be appointed as voluntary administrators is therefore false,” the letter read.
Speaking to ABC News Breakfast on Tuesday, Transport Minister Catherine King said she is ready to “see whether there’s any assistance or anything the Government needs to do” to help Rex, but did not go into detail.
“[It’s] a bit early to speculate what that will look like. We’re obviously putting some contingencies in place. We want to make sure that people continue to [see] service in regional areas,” she said.
“Let’s wait to see what the announcement is tomorrow. But what I would say is anything that the government did, or if we were to do so, would really be looking at what is in the public interest to do. And we think very clearly it’s important to keep regional aviation and regional connectivity.”
Rex is arguably the last remnant of Ansett, having been born from its regional arms Hazelton Airlines and Kendell Airlines following the carrier’s final collapse in 2002. The airline’s own website says it “arose from the ashes of the collapse of the Ansett Group”.
“By 2020 when the Covid pandemic decimated the global airline industry, Rex was already the largest regional airline in Australia with over 60 destinations,” the website reads.
“Even though badly affected by the pandemic, Rex took the bold step to commence domestic jet operations, starting with services in the golden triangle of Sydney-Melbourne-Brisbane, in March 2021.”
Rex has been contacted for comment.
Richard Daniell
says:Borrowing the money to fund expansion is always a recipe for disaster. With such a conflicted board they’ve been doomed for a while now. They already receive substantial government assistance, plus manage NSW & VIC ambulance contracts – the government can’t sit by and let them fail.
[email protected]
says:I respectfully disagree that the government must support Rex. It is a privately run company responsible for its own operations and strategy. The governments bear no responsibility. Let the Rex directors face the wrath of customers, employees and stakeholders they have failed with their decisions.
Christopher Kohler
says:REX is a very good airline and deserves some government support………..during covid Qantas which is also a privately run airline was given $2.7 billion of taxpayer dollars that the treasurer said they did not have to repay !!!
and when it was suggested that they did return some money as many companys did they said no
John Hogan
says:I only recently did my first flight with them. It happened to be the best option time-wise. It was a notably good experience. Since then people have told me good things about the history and people that made sense. I’d decided to actively look out for them as an option. The apparent management issues aside, I reckon it would be better for the sector if they and/or the competent people and culture they’ve built go on to become more prominent.