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Virgin has re-seized control of the 737 taken from it by Rex mid-pandemic – and is now flying the aircraft around Australia complete with the iconic VH-REX registration.
The news caps a remarkable turnaround that saw Rex obtain some of Virgin’s leased aircraft when it entered administration in 2020, before the larger carrier took them back when the same fate befell the regional carrier last year.
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An update from the CASA register, though, uncovered by Australian Aviation’s Hannah Dowling, reveals the registration has surprisingly also been transferred along with the aircraft.
Rex entered voluntary administration at the end of July, with estimates it owed around $500 million to 4,800 creditors after its failed venture into competing with Qantas Group and Virgin Australia on domestic jet operations.
VH-REX is one of the most prized registrations in Australia and was initially obtained by Rex to use on one of its smaller Saab 340 aircraft in 2010.
The airline then transferred it to one of its flagship 737s when they began flying domestically in 2021, following an injection of funds from Asian investment firm PAG.
Alongside VH-REX, another former Rex aircraft, VH-RQP, has also formally shifted hands to Virgin.
However, when the larger carrier took control of the 737s, it also pledged to help Rex’s grounded customers by offering free flights to those with tickets. In total, 135,000 passengers took up the option.
Christian Bennett, Virgin Australia’s chief corporate affairs officer, told Australian Aviation last year, “We made an immediate and decisive decision to lend a helping hand to Australians impacted by circumstances confronting Rex’s jet services.
“There is a real sense of pride within the Virgin Australia team that we have been able to support Rex’s customers and employees in such a meaningful way.
“Aviation is an intensely challenging and competitive sector. But it can also be – at times of challenge – a tightly knit community. And now is a moment of community.
“We are hopeful that doing our bit now – and through longer-term measures such as code-sharing and loyalty arrangements – we will help Rex continue to play an important role in Australian aviation, especially given its critical role connecting regional and rural communities.”
Rex’s administrators, meanwhile, this month begun a new recapitalisation and sale process for the airline, which is now focussing exclusively on regional flying.
In a statement to the ASX, EY Australia said it has brought in Houlihan Lokey to manage the sale and “anticipates a competitive process” from interested parties.
The federal government has already announced that it would nationalise Rex if a commercial buyer could not be found through the sale process, in order to ensure its essential transport services stay in the air.
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says:Both Aircraft were originally Virgin Blue / Virgin Australia aircraft. VH-REX was originally VH-VUU and VH-RQP was VH-BZG so they’ve come full circle.