The federal government will guarantee Rex flight bookings for existing and future customers as the budget carrier undergoes voluntary administration.
Administrators were appointed to five companies in the Rex group on July 30, with the airline grounding its Boeing 737s on routes between major metropolitan centres.
Regional flights have continued while a buyer or financial lifeline is sought for Rex.
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Minister for Infrastructure, Transport and Regional Development Catherine King today guaranteed that Rex customers can continue to book flights and claim refunds.
King said her department is working closely with administrators throughout the regional airline’s administration
“We also expect the administrator to honour and prioritise the entitlements of Rex employees,” she said in a statement.
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“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.”
Administrators are hopeful the administration process would last no longer than five weeks.
Rex emerged from the collapse of Ansett in 2002 and offers passenger, freight and chartered flight services as well as flight training.
It has struggled with profitability since aggressively expanding in 2021 to compete on capital-city routes against dominant operators Qantas and Virgin Australia.
In February, the airline reported a net loss of $3.2 million for the first half of the 2023/24 financial year as it burned through money spent on its major-city services.
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