Visit Qatar
Visit Qatar

Latest News

Share this article

The high-stakes reality of a Rex failure: AAA breaks it down

As Rex teeters on the edge of voluntary administration, fresh analysis from the Australian Airports Association (AAA) lays bare just how deeply its potential collapse could slice into Australia’s aviation sector and regional communities.

As Rex teeters on the edge of voluntary administration, fresh analysis from the Australian Airports Association (AAA) lays bare just how deeply its potential collapse could slice into Australia’s aviation sector and regional communities.

AAA CEO Simon Westaway pointed to AAA’s analysis as evidence of the regional aviation market’s strength—and the pressing need to safeguard its continued services.

“Rex is still carrying tens of thousands of passengers to and from regional communities each week, allowing residents to visit loved ones and attend important medical or business appointments,” AAA CEO Simon Westaway said.

AAA reported that Rex is the sole carrier on 42 regional routes, including essential links like Melbourne – Mount Gambier, Sydney – Parkes, and Adelaide – Broken Hill. Additionally, the airline competes on 20 other regional routes, carrying around 75,000 passengers each week. 

With so much at stake, the AAA’s findings underscore that without Rex, the infrastructure keeping these routes alive might collapse, leaving entire communities stranded without reliable access to air travel.

A looming threat for smaller airports

According to the AAA, the airline owes significant sums to smaller regional airports — debts totalling over $4 million. For many small airport operators, this is no small number.

“We urge the Albanese Government to continue working collaboratively with airports to ensure that no communities are left stranded and regional connectivity is upheld,” Westaway said. 

The AAA is calling for ongoing support beyond the recently announced $80 million in Federal Government funding to sustain Rex’s operations. For regional communities, this lifeline could mean the difference between continuity and a complete service shutdown.

The map shows routes operated solely by Rex (in gray) and routes operated by more than one airline, including Rex (in red). Image: AAA
The map shows routes operated solely by Rex (in gray) and routes operated by more than one airline, including Rex (in red). Image: AAA

Essential routes and the impact on regional connectivity

The AAA report highlights the specific routes that rely almost exclusively on Rex Airlines. It’s easy to take connectivity for granted if you live in a metro area with multiple airlines, but for these regional routes, Rex is often the only option in town.

And it’s not just the isolated routes. In markets like Albany – Perth and Brisbane – Roma, Rex holds a commanding seat share of over 70%, making it the dominant player. Even on more competitive routes such as Adelaide – Port Lincoln, Rex holds a 40–50% share, which still makes it crucial to maintaining affordable and accessible regional airfares.

In Rex’s absence, any remaining providers could well hike up prices, forcing passengers to pay a premium or forgo travel altogether.

The vital role of collaboration

With Rex’s future uncertain, industry experts and regional leaders are calling for a collaborative approach. The AAA has emphasised the need for both the federal government and industry stakeholders to step in to prevent these communities from losing their vital air links.

But the potential loss of Rex Airlines is an issue for the entire aviation industry. As the AAA represents more than 340 airports across Australia, the organisation knows that without a thriving regional network, the flow-on effects could be enormous.

“Air connectivity is a lifeline for regional communities,” Westaway said. 

For the Australian aviation sector to grow sustainably, regional operators must be supported to provide reliable, affordable services. Whether you’re an airport operator or a frequent flyer, the health of regional routes has implications for the industry as a whole.

The AAA’s latest report is a call to action. With hundreds of thousands of travellers relying on Rex, regional connectivity in Australia could be at a crossroads. And while federal funding provides a temporary cushion, only a coordinated industry effort will ensure that regional air travel doesn’t become a casualty of financial turbulence.