Stay on top of all of the latest news about Rex’s voluntary administration, plus its impacts on travel and the travel industry in one place, right here.
We’ll continue to refresh stories about Rex Airlines as they come to hand, so be sure to check back for the most current and accurate travel industry updates.
Do you have any info or news to share about what you’re experiencing? Please email us at editor@karryon.com.au.
Pay travel agents and businesses, pleads ATIA
Monday 19 August 2024
Right now, travel businesses are facing an $11.5 million exposure due to Rex’s administration, with advisors managing customer concerns and traveller uncertainty while absorbing the financial impact of the airline’s struggles.
With this in mind, the Australian Travel Industry Association (ATIA) has called for financial assistance to be extended to the wider travel ecosystem beyond consumers and the airline itself.
While welcoming the government’s guarantee that Rex’s regional operations would continue, ATIA CEO Dean Long said “it is equally important to recognise the burden being shouldered by travel advisors across Australia”.
“These professionals have not only faced substantial financial exposure but have also taken on an increased workload, ensuring that travelling Australians receive the support they need during this difficult time,” he stated.
“We call on the Federal Government to provide financial assistance to travel advisors and businesses who are also caught up in the Rex situation and who play such a vital role in supporting Australian travellers, corporate and leisure.
“Extending this support is not just about fairness; it’s about maintaining the resilience and integrity of Australia’s travel sector. We look forward to further discussions with the Government to secure this necessary support.”
Govt gives guarantee to Rex customers
Thursday 15 August 2024
In a positive update for regional communities, domestic travel and Rex Airlines, the Federal Government has just announced it will guarantee regional bookings for Rex flyers during the carrier’s voluntary administration process.
In a statement, Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King, said travellers can rest assured that during the process “they will either fly or get their money back”.
“Rex operates one of Australia’s largest regional air networks and provides essential connectivity to move people and critical freight on 41 routes to regional and remote communities, including 21 routes that are only serviced by Rex,” she stated.
“Rex’s continuation is in the best interests of Australia – and the Government is working closely with the administrators to ensure a strong regional aviation presence now and into the future.”
King said that the guarantee is for “all regional flight bookings with Rex made after it entered voluntary administration at 9:31pm on 30 July 2024”.
“This will give customers confidence to continue booking regional flights with Rex – flights that allow them stay connected to family, friends, healthcare and other services – while also helping to maintain regional aviation in Australia,” she added.
“My department will continue to work with the administrator on their plans for the continuation of services to regional communities.
“We also expect the administrator to honour and prioritise the entitlements of Rex employees.
“This guarantee is a message to regional Australia that we know how important reliable air services are to you and that we are not going to allow your communities to be left behind.”
Voluntary administrator of the Rex Group, Sam Freeman, welcomed the guarantee, “which is a positive step toward securing the future for Rex, Rex’s 1,200-plus employees and all Australians who rely on these services to connect their communities”.
“We have experienced firsthand the importance of Rex’s regional services to the communities the airline serves and would like to express our gratitude to the Federal Government for stepping in with this support,” he remarked.
“The Federal Government’s flight booking guarantee will give Australians confidence to continue booking to or from a regional destination on Rex, ensuring that in the unlikely event that their service is not delivered – they will be entitled to receive a full refund.
“The guarantee will help Rex to keep flying while we undertake the recapitalisation of the airline and secure its future.”
Freeman added that administrators from Ernst & Young Australia were “currently undertaking a process to find an investor committed to a sustainable commercial regional network”.
“Rex is here for regional Australia, and we encourage all Australians to see Minister King’s announcement today as a confidence boost and continue booking during the voluntary administration,” he stated.
“Keep booking with Rex”: EY says, as 20K pax fly in first week of administration
Monday 12 August 2024
Following the first meeting of Rex creditors last Friday, Ernst & Young partner Samuel Freeman has told travellers to confidently continue to book flights with the beleaguered carrier.
“We’re saying to Australians, keep booking with Rex. The administrators are in control of the business and are overseeing its operations,” he told the ABC Monday.
“We have demonstrated since the appointment that the Rex planes are getting people where they need to go to and we’ve secured funding to enable us to continue to do so in the administration period.”
Freeman said EY has had “incredible success” alongside the Rex team so far, with the airline carrying more than 20,000 passengers on 600 flights in the first week of the administration.
He added that administrators would continue to focus on providing flights to regional and rural areas and getting “Australians to where they need to get to”.
Meanwhile, NSW has declined to help bail out Rex Airlines, adding pressure on the Federal Government to step in, The Canberra Times reported.
“We fully acknowledge it is important for regional economies, it is important for the way they interact with Sydney … if those routes are cut then we’ve got major problems,” NSW Premier Chris Minns said on Monday.
“(But) the federal transport department, they’re responsible for aviation policy …. too many cooks here could spoil the broth, and I don’t want to be in a situation where we’re adding to complexity.”
Rex, facing around $500 million in debt, is selling assets and seeking buyers to survive.
Rex may owe refunds to up to 185,000 flyers; but is a bailout necessary?
Thursday 8 August 2024
Rex, which went into administration on 30 July, owes money to over 4,450 creditors, including more than 1,000 employees. However, this number is expected to rise. Creditors include airports, governments, the tax office and major investor PAG Capital.
Up to 185,000 passengers may also be owed money due to cancelled flights.
In a Federal Court hearing, administrator EY’s Daniel Krochmalik said the number of creditors is expected to rise, The Australian reports.
Rex also owes airports, governments, the Australian Taxation Office and principal investor PAG Capital. Up to 185,000 customers may also be creditors due to cancelled flights operated by Rex’s grounded Boeing 737 fleet.
Meanwhile, the Australian government is considering a bailout for the struggling airline, but only if it keeps flying to smaller towns.
EY administrator Sam Freeman said the government is willing to help but believes Rex can be sustainable without a bailout.
“We’re doing a lot of modelling there to suggest that it’s a viable business into the future, it does need to be reshaped into that … but definitely we see a stronger, viable Rex into the future,” he told AAP.
Major routes can support “four viable” airlines: ATIA
Tuesday 6 August 2024
As Rex’s future remains unclear, ATIA CEO Dean Long has talked up the need, and viability, of more than just two major airlines in Australia.
“It is going to be very easy for people to say that this just demonstrates that Australia can only have two airline companies… that’s not correct,” Long told Karryon after Rex went into voluntarty administration.
“What it shows is that the current competition settings for an airline, which had a robust, profitable network already in Australia, still couldn’t crack the fifth most profitable air route in the country, because of the way competition policies are set… and that means there’s less competition, [which] will lead to higher airfares, [and] lead to less consumer choice.”
And this has a knock-on effect for travel professionals.
“The impact on the travel industry is… it makes it more challenging for us to compare and contrast and to drive more value for the customer. That’s the disappointing part,” he added.
While Rex is still flying its important regional and rural operations, its bread and butter routes, Long said he hopes to see Rex return to major city routes too “because we do believe there’s more than enough room in the Australian market to have four viable brands – Jetstar, Qantas, Virgin and Rex – if they’re allowed to compete fairly”.
“That’s why we’ve got to see reform and competition space for aviation,” he told Karryon.
In a statement, Long added that, “all the evidence from around the world is that when you have routes with this amount of traffic on them, you can sustain three players in the aviation market”.
Investors eye Rex Airlines
Monday 5 August 2024
Rex Airlines’ administrator, Ernst & Young Australia (EY), says there is strong interest from potential buyers for the carrier, despite concerns about the airline’s finances.
Rex appointed EY as voluntary administrators, halting all Boeing flights following a business review in May.
According to Fairfax Media, EY partner Sam Freeman said there are currently a “large number” of interested parties in Rex.
“We have received a large number of expressions of interest to be involved in the sales process… we have confidence there’s going to be a lot of people participating,” he remarked.
The identity of potential buyers has not been made public.
The voluntary administration period is expected to last five weeks.
YOUR SAY: Travellers and travel industry pros react to Rex Airlines’ failure
Friday 2 August 2024
Australian travellers and travel industry professionals have weighed in on Rex’s voluntary administration and its impacts on the sector, with most lamenting the airline’s failure.
On Rex being up to eight months behind on some travel agent payments, one commenter on Karryon’s social media channels said, “One [month] is too many directors should respond, not taxpaying”.
Another was not even aware Rex Airlines paid commissions.
“Yep small amounts but better than nothing … if you book on there [sic] portal it is commission paid on regional routes,” a user responded.
Fans of the airline expressed their disappointment in the news. Here’s what some of them said:
- So sad. REX was such a great quality airline.
- I’m really sad to hear this as I know the original owners of Hazleton… they turned into Rex with lots of help, they would be stricken that this has happened.
- Man, Rex had super competitive fares, the newest planes for those capital city routes. Every time I’ve tried to switch sell to Rex, everyone’s first and major blowback was that they think the plane is a propeller plane or similar to a regional plane. This is a real big blow to the Industry. And watch as the SYD-MEL route prices jump in price without anyone keeping the major airlines honest.
- Thought they were great when I flew with them and my staff always commented favorably when they flew with them. I think it was a lack of marketing (never saw any advertising) – and here in Brisbane it was pretty hard to find the checkin.
- Hopefully the government can help. So many regional areas rely on Rex!
Others bemoaned Rex Airlines’ move into Boeing operations on major routes. Here’s what they said:
- Rex should have swum in their lane and stuck with regional travel using turbo prop aircraft.
- Fingers crossed they can go back to focusing on what they have always been excellent at – regional air travel, and they can trade away their debt from the 737 operations.
- Get rid of the 737 fleet and keep the impressive regional going.
- My sister is an air hostess for the SAB340’s – she’s still currently flying. Haven’t grounded the Regional turbo props. REX were all good until til they introduced the bigger Boeings. Should’ve just stayed with the regional routes…
Elsewhere, others showed concerns for the Australian aviation sector more broadly:
- Australian aviation is having a horrible time of it this year.
- Everyone’s going into voluntary administration round here.
- I could’ve sworn I saw a job advert for Rex the other day! Why are they advertising for jobs if this is going on!
ATIA: Rex up to 8 months behind on payments to some agents
Thursday 1 August 2024
Speaking to Karryon, the Australian Travel Industry Association (ATIA) CEO Dean Long says that “in some instances, Rex is up to six months behind or even eight months behind on payments” to travel agents.
Therefore, Long says, it is crucial that “any [government] packages that are there for Rex have to recognise the importance of the entire ecosystem”.
“Any government support package or any administrator must make sure the trade is remunerated,” he states.
“That means making sure agents are refunded the money that they are rightly due.
“So we’re getting a few calls in now about how much Rex owes trade. There is a government assistance package. That package has to support the agency community, and the advisor community that has supported Rex.”
According to ATIA, many agents are owed “significant” and “substantial” amounts by Rex Airlines. Ironically, these travel professionals are now also supporting Australians impacted by Rex entering voluntary administration.
ATIA says it has written to Federal Transport Minister Catherine King about support for the travel industry.
“Financial assistance is crucial to help travel businesses manage this difficult period, and we are hopeful the Federal Government will understand that,” Long tells Karryon.
“We had a very productive meeting with Transport Minister Catherine King earlier this week, and she understands how the travel eco-system works.
“Ensuring that those travel agents impacted are supported is essential given the circumstances, and also important for maintaining the integrity and competitiveness of the Australian travel industry.
“ATIA remains committed to supporting its members through these challenging times and will continue to advocate for measures that safeguard the interests of the travel industry.”
“Everyone has flown Rex”: Travel industry reacts
Wednesday 31 July 2024
ATIA’s Dean Long called Rex’s woes “a significant blow not just for these areas but also for the competitive landscape of Australian aviation”.
“Rex Airlines has been a lifeline for much of regional and rural Australia, ensuring these communities stay connected to the rest of the country.
“We remain hopeful that Rex is able to navigate this challenging period and emerge to trade again. In the meantime, your travel professional is doing everything they can to work through your options.”
Speaking to Karryon, Long said ATIA remains hopeful “that the government will do everything within its power to support the regional network”.
“Everyone has flown Rex at some point in their life for a significant occasion, for work or for leisure, and so that needs to be protected and supported. And we’d be supporting the government and whatever efforts they have to support Rex in that space.”
Govt needs to take stake in Rex Airlines: TWU
Wednesday 31 July 2024
The TWU has called on the government to buy into Rex Airlines to help workers and called for a Safe and Secure Skies Commission to address the current “crisis in aviation”.
“We are calling on the Federal Government to act with an equity stake in Rex, and a Safe and Secure Skies Commission to provide a voice to workers, passengers and the community for aviation,” TWU National Secretary Michael Kaine remarked.
“The Federal Government has sent positive signals that it does not intend to leave regional Australia in the lurch. An equity stake would serve workers, regional Australia and taxpayers now and into the future.
610 job losses
Wednesday 31 July 2024
The Transport Workers’ Union (TWU) says that there will be some 610 job losses across the Rex Airlines Pty Ltd (RAL) and Regional Express Holdings Limited (Rex) businesses, with workers briefed by administrators on Wednesday morning.
It states 360 jobs will be made redundant in the RAL business, which services the 737 flights, with a further 250 job losses expected during the voluntary administration process for Rex, which operates regional routes.
“This is another dark day for aviation, with over 600 families faced with sudden joblessness in an industry that has taken hit after hit,” TWU’s Michael Kaine said.
“We are working to secure job opportunities at other airlines and aviation companies for ground crew, cabin crew and pilots, and have had positive conversations with Virgin Australia and ground handler Dnata.
“The focus now must be on maximising jobs, protecting regional routes, securing redeployment opportunities to other aviation businesses and ensuring entitlements are paid as soon as possible.
Govt must cover workers’ entitlements: USU
Wednesday 31 July 2024
The United Services Union (USU) which represents Rex’s front-line staff, is calling on the government to cover the staff entitlements of workers who have been informed they will lose their jobs.
The union states that Rex staff were told they would miss out on legal entitlements, even though the airline continues to fly.
“As late as the weekend workers were working overtime and on RDO’s when Rex bosses must have known they fully intended to sack them, and would try and get out of paying, it’s absolutely outrageous,” USU General Secretary Graeme Kelly OAM said.
“Rex management could have been in contact with us months ago and brought us into discussions, but instead they chose to wait until the airline goes belly up and there is nothing we could do to help.
“And on top of that they’ve left no money to pay their workers, the union is ropable about this.
“The Albanese Government needs to step in and make sure these workers are looked after.”
Qantas offers seats
Wednesday 31 July 2024
Qantas had 13 overlapping routes with Rex’s 737 flights and said that it would offer customers impacted by cancelled flights due to the grounding of Rex’s domestic jet services travel “on the same route as their original booking at no charge, where we have seats available”.
Flyers have until 31 August 2024 to take Qantas up on the offer. Customers with an impacted Rex booking can contact Jetstar on Live Chat or 13 15 38 and Qantas on 13 13 13 to make a booking.
The flying kangaroo said it is also ready to help Rex employees where possible with opportunities within the Qantas Group.
“This is a challenging day for our industry and we are sad to see Rex enter voluntary administration with the immediate suspension of its Boeing 737 operations,” the carrier said in a statement.
“We know this will be a difficult period for many Rex customers and employees and we stand ready to assist.”
Home to Rex’s largest jet base
Wednesday 31 July 2024
Melbourne Airport was home to Rex’s largest Boeing base, with four of the airline’s 737 jets currently parked at Tullamarine.
The first Rex jet service also departed Melbourne for Sydney in March 2021, so there’s a special link to Rex’s jet operations at MEL.
While services to Sydney, Brisbane, Adelaide, Canberra, Hobart, the Gold Coast and Perth have been cancelled, “Rex’s regional flights to Mildura, Merimbula, Mt Gambier, King Island, Burnie, Devonport and Wagga Wagga continue to operate as scheduled and passengers booked on these services should proceed to the airport as normal”, the airport stated.
“Our thoughts are with the staff affected by this announcement. The team at Melbourne Airport will continue to work hard to facilitate new entrants to the Australian market because of the benefits they bring to consumers.”
“Difficult moment”: Virgin CEO
Tuesday 30 July 2024
In a statement, Virgin Australia Group CEO Jayne Hrdlicka called the news a “difficult moment for Australian aviation” and a “reminder of the challenging nature of our industry”.
“Our team is now moving quickly to support Rex’s customers and people,” she said.
“Impacted Rex customers will be supported with rebooking on an equivalent Virgin Australia service free of charge.
“Rex customers with imminent travel in the next 48 hours should contact the Virgin Australia Guest Contact Centre on 13 67 89.
“Those travelling outside 48 hours should visit the Virgin Australia website to complete a rebooking form.”
Hrdlicka also confirmed that Virgin will offer support for impacted Rex Airlines employees.
“People whose employment has been affected should visit the expression of interest form on our website to apply for open positions,” she stated.
In support of regional travellers, the VA boss also confirmed that Virgin plans to support Rex’s regional network “to enable seamless access to Virgin Australia’s domestic and international destinations through potential codeshare or interline arrangements in the future”.
“The team at Virgin Australia are thinking about everyone at Rex today, an airline with a proud and important role in Australian aviation, particularly for regional Australia,” Hrdlicka said.
Writing on the wall for Rex
Tuesday 30 July 2024
Signs that the airline was struggling have been evident for months.
Earlier this year, Rex Airlines announced that its network reductions, which were put in place at various points in 2023, would go on until at least 27 October 2024.
More recently, it was revealed Rex’s largest shareholder, Singaporean businessman Lim Kim Hai, wanted to replace the entire board a month after being ousted as the company’s executive chairman.
Last Friday, The Australian reported the appointment of Deloitte “turnaround” experts to save Rex from going under before the carrier placed a halt on trading on the Australian Stock Exchange (ASX) Monday.
Earlier today (Tuesday), Rex Airlines ceased selling tickets for its Boeing services.
In anticipation of the announcement, the Transport Workers Union (TWU) promised to work with Deloitte administrators to save the airline from going the way of Bonza, which went into liquidation less than a month ago.
“We will work with Rex”: Govt comments
Tuesday 30 July 2024
According to Fairfax Media, Prime Minister Anthony Albanese called Rex “an important regional airline”, especially for regional communities.
He added that the government would “examine any proposals” to help save the carrier.
“Rex receives substantial government support with no conditions,” he said at a press conference.
The PM added, “We want to see the aviation industry in Australia continue to be one that provides those services and that access [to regional Australia]”.
Speaking at the site of the future Western Sydney Airport on Tuesday, Federal Transport Minister Catherine King said “the government is in no doubt of the importance of regional aviation and Rex to regional aviation”, The Guardian reported.
“We will work with Rex, we want to make sure that they have a future as part of aviation in this country, and we’re very determined to make sure that happens,” she stated.
“We obviously don’t want to do that at any cost, we want to be involved very closely in what that future might look like.”
Rex Airlines enters voluntary administration, grounds B737 fleet; administrator updates flyers
Tuesday 30 July 2024
Beleagured Rex Airlines has entered voluntary administration, grounding all B737 flights from major airports. However, the carrier will continue to operate regional flights using its Saab 340 aircraft.
“Regional flights are unaffected by the administration and will continue to operate as normal,” Rex Airlines says in a statement on its website.
“Customers can continue to make bookings at rex.com.au or via their travel agent.”
Ernst and Young have been appointed as administrators of Regional Express Holdings Limited and several subsidiaries of the Rex Group and issued this message.
In a sad day for Australian aviation, the move comes just after the domestic carrier halted trading on the ASX.
On its website, Rex says it has struck a deal with Virgin Australia “to honour all prepaid tickets for the Rex Group’s direct services between domestic capital cities, at no additional cost to passengers”.
“If you hold a prepaid ticket for future travel on any of these routes, you can transfer your Rex booking to a similar Virgin Australia flight,” it states, with affected customers to be contacted directly by Rex.
“To rebook your travel, contact the Virgin Australia Guest Contact Centre on 13 67 89 or visit www.virginaustralia.com by Wednesday 14 August 2024.
“Holders of affected tickets should not come to the airport for their flight until they have made alternative arrangements with Virgin Airways [sic].
“Eligible customers will be reaccommodated on Virgin Australia flights as close as practicable to their original time of travel.”
Rex Airlines will not be offering refunds.
The impacted Rex routes that can be rebooked with Virgin Australia include:
- Melbourne (MEL) – Adelaide (ADL)
- Melbourne (MEL) – Canberra (CBR)
- Melbourne (MEL) – Brisbane (BNE)
- Melbourne (MEL) – Coolangatta, Gold Coast (OOL)
- Melbourne (MEL) – Hobart (HBA)
- Melbourne (MEL) – Sydney (SYD)
- Melbourne (MEL) – Perth (PER)
- Sydney (SYD) – Brisbane (BNE)
- Sydney (SYD) – Coolangatta, Gold Coast (OOL)
- Sydney (SYD – Adelaide (ADL)
- Brisbane (BNE) – Adelaide (ADL)
- Adelaide (ADL) – Perth (PER)
- Brisbane (BNE) – Cairns (CNS)
Karryon has contacted Rex Airlines for comment.
