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The Albanese government has flagged the potential nationalisation of Rex in this year’s federal budget, reinforcing its earlier commitment to save the struggling airline if necessary.
The 2025–26 budget papers, released this week, note that “in the event there is no sale, the government will undertake work on contingency options in consultation with relevant states, including preparations necessary for potential Australian government acquisition of Rex”.
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The government had already extended $80 million in funding to keep Rex in the air, as well as buying $50 million of its debt from financier PAG to ensure it had the final say in what happens when the airline’s administration period ends. A private sale process is currently underway.
“The Government is providing up to $130 million in secured loans to keep Rex Airlines operational during its extended voluntary administration to 30 June 2025, while a competitive sale process is held,” the government said.
“This will help maintain critical aviation services for regional and remote communities.”
The TWU has welcomed the move, calling it a “vital first step to secure Rex’s future”.
“The Federal Budget has delivered what regional communities and aviation workers desperately needed – a strong commitment to step in and secure Rex’s future if the market fails to deliver,” Michael Kaine, national secretary of the TWU, said.
“This will maintain regional connections, recognising that essential national infrastructure requires public investment and oversight.
“After decades of aviation policy that privatised profits while socialising losses, the government is acknowledging what workers have long understood – some services are too important to be left for corporate vultures to pick at.
“The government’s commitment to potentially taking ownership of Rex aligns with global best practice, and deserves support across the parliament.”
The news follows the sale of Rex’s aeromedical arm Pel-Air to Toll Aviation for $47 million in October last year, as well as the sale of Rex’s shares in FIFO firm National Jet Express (NJE) to former executive chairman Lim Kim Hai and the purchase of its simulator centre by Navinci Group.
Rex entered voluntary administration at the end of July last year, with estimates that 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.
The government has since propped up the ailing carrier by guaranteeing its regional bookings and preserving its slots at Sydney Airport, but no buyers have thus far emerged.
gary cusack
says:well they better hurry up and do it b4 the election cause sure the lnp party wont be doing it if they take goverment
Alan Hume
says:Perhaps I’m being very naive, but why not move Rex ops to Bankstown, Essendon and Jandakot with dedicated terminal facilities being built at each site? It would release valuable slots at the majors and be cheaper for Rex, without unduly inconveniencing their clientele (they’d likely welcome it). As they have an all-turboprop fleet (and likely to remain so, even if modernised with ATRs or the like) noise and curfews would nor be an issue. Just a thought.
[email protected]
says:She probably won’t thank me for the suggestion but as this saga continues how about we ask the “Boss Lady” to act as a consultant the aim of which will draw a speedy conclusion to what is a hopeless mess. Realistically, who would invest in this dying one time good outfit