Federal Government to Provide $80 Million in Financing to Support Rex's Regional Routes

Source: Govt announces $80m to keep Rex regional flights afloat - Inside Local Government

Federal Government to Provide $80 Million in Financing to Support Rex's Regional Routes

The Federal Government has announced it will provide up to $80 million in financing to help Rex Airlines maintain its regional routes during an extension of its voluntary administration process. The funding will support the airline’s critical services to regional communities across Australia.

Minister for Infrastructure, Transport, Regional Development, and Local Government, Catherine King, confirmed Rex’s administrators will seek approval from the Federal Court to extend the voluntary administration until June 30, 2025. This extension will allow Rex to continue operations and repay secured creditors following the sale of Pel-Air Aviation to Helicorp Pty Ltd.

The government has also granted early access to the Fair Entitlements Guarantee (FEG) for former employees of Rex Airlines, ensuring they can access their entitlements while the company remains in administration. Additionally, Rex’s administrators and main creditor, PAG, will pay the entitlements of redundant employees from the regional arm of the business.

A government ticket sales guarantee will remain in place until June 2025 to reassure passengers, with no claims made so far. Minister King reaffirmed the government’s commitment to regional aviation, encouraging passengers to continue supporting Rex’s services.