The Australian Government will take on $50 million in Rex debt to ensure the beleaguered regional airline continues to service rural and remote areas. However, the Transport Workers Union (TWU) says a long-term solution is needed to protect aviation jobs and the regional communities serviced.
From today, the Government will acquire $50 million in debt from Rex’s largest creditor, PAGAC Regulus Holdings Limited (PAG), to avoid an adverse outcome for regional communities, such as liquidation.
This builds on the $80 million government loan handed to Rex to continue operating and ensure early entitlement access for redundant workers during its voluntary administration.
Minister for Infrastructure, Transport, Regional Development & Local Government Catherine King said by taking on the $50 million in Rex debt, the Federal Government will now become the principal creditor.
To date, she said the Employment & Workplace Relations Department has received 306 claims and processed 302 claims from former Rex (RAL) employees with more than $7.1 million already provided to Rex staff through FEG.
Rex debt – What’s next?

A YouGov poll commissioned by TWU shows 71 per cent of respondents support Federal Government intervention to ensure Rex continues to fly, and 75 per cent believe the Government should take an equity stake when bailing out companies such as Rex.
Almost three in four (74%) support the creation of a new independent commission to set standards for jobs and services in aviation.
While TWU believes today’s announcement about the absorption of Rex debt is a step in the right direction, it called on the Government for a follow-up with an equity stake to ensure long-term stability.

TWU National Secretary Michael Kaine said: “This announcement is a relief to workers and the flying public and a clear message that the Federal Government will not let Rex fail.”
“We know that Rex is a lifeline to regional Australia: essential for healthcare, tourism, business and connecting families.
“While today’s announcement is an important next step, the constant instability in aviation hurts businesses and it hurts communities. Without a long-term solution for Rex and for the broader aviation industry, we’re going to keep seeing a vicious cycling of failed airlines,” he said.