iscover
Regional business travel has increased this year despite the collapse of Bonza and voluntary administration of Rex.
According to data released by Flight Centre’s Corporate Traveller division, corporate travel to regional Australia increased by 13 per cent year on year in the September 2024 quarter, with Mackay, Newcastle, Cairns, Townsville, and the Gold Coast among the top regional destinations.
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
Demand for regional travel is “robust”, the company said, in spite of capacity constraints and uncertainty in the sector following Bonza’s liquidation and the collapse of Rex’s domestic arm forcing the airline into administration.
Economic growth fuelled by the mining and clean energy sectors are bolstering the travel market, said Tom Walley, Corporate Traveller’s Australian-based global managing director.
“We book thousands of regional business trips every month for customers spanning construction, mining, financial services, consultancies, government, and retail. Our data provides a thorough snapshot of what’s happening in the business travel sector,” Walley said.
“We expect the demand for regional travel to maintain this rate of growth as more investment pours into these areas, particularly in the renewable energy sector.
“The strong growth in regional destinations reflects the expanding opportunities in these hubs. It’s essential for the aviation industry to support this growth to ensure capacity keeps up with demand and airfares remain competitive.”
Australia’s largest regional airline group, Rex, is still operating turboprop flights across its network despite being in voluntary administration, with administrator EY last month winning an extension to its appointment until June next year. The extension follows $80 million in federal government funding to keep the carrier afloat.
The move is another indication that the government does not want Rex to fail, having moved to prop up the ailing airline since its administration at the end of July, including by guaranteeing bookings and preserving its slots at Sydney Airport.
EY Australia has been unable to find a buyer for Rex’s regional operations, though it has sold aeromedical division Pel-Air to Japan-owned Toll Aviation and is reportedly looking to sell Rex’s flight school in Wagga Wagga.
The funding and extension of the administration have been met with criticism by some of its regional rivals, with Sharp Airlines calling the bailout “extremely disappointing”. Sharp and other regional carriers such as Hinterland Aviation have suggested they could take over routes currently operated by Rex should the carrier fail.
