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The Regional Aviation Association of Australia (RAAA) has called on the federal government to support a wider range of regional airlines in the wake of Rex’s buyout.
In a statement, the peak body for regional aviation welcomed the government’s “commitment to regional Australia”, but called on it to “support all Australian regional airline operators, not just Rex”. It comes as Transport Minister Catherine King announced financial aid for Air T’s purchase of Rex.
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“The announcement means that the Government has provided over $220 million in support of Rex. We are asking the Government to also assist all hardworking Australian regional airlines. Assistance through government backed loans, government guarantees, or tax incentives would potentially help,” Rob Walker, chief executive of the RAAA, said.
“Without action on the key issues now the future looks increasingly bleak for regional and remote aviation services. Regional communities across Australia risk losing critical aviation services without urgent political and policy action.
“RAAA member airlines operate regionally with similar sized aircraft and the same operational costs as Rex. We are asking Government to help secure the future viability and sustainability of aviation by supporting all regional airlines and the communities they serve.
“The people who run and work in regional aviation businesses love what they do and are doing their utmost to support their communities – now they need the right support from government.”
The federal government is extending another $60 million in financing to Rex on top of the money it is already owed, with an existing $90 million to be repaid over time in a profit-sharing arrangement, under the proviso that Air T continues operating its regional services.
There will also be a relief package of $5 million to airports owed money by Rex, which, as unsecured creditors, are set to receive nothing from the Air T purchase.
“Our members are committed to providing world-class aviation services to the regional communities we serve and remind all stakeholders that there is more than one regional airline operating in Australia,” Walker said.
“We also welcome the Government’s commitment to support the regional airports who have been impacted by Rex’s voluntary administration. The $5 million support program will provide vital relief for those airports who as unsecured creditors have continued to support Rex.”
Rex’s creditors are set to vote on whether to approve the buyout at a meeting on 11 November, which the government, as its largest creditor, said it would support.
