Just over a month since budget regional airline Bonza collapsed, fears are brewing around the future of Rex.
Australian Prime Minister Anthony Albanese has expressed concern about Rex’s decision to move away from its regional model and adopt flights between Sydney and Melbourne.
“Rex, as a regional airline, provides important links with regional communities, particularly between capital cities and regional communities. It is important for those local economies,” he told reporters.
The comments come as the future of the Australia’s third-largest airline is up in the air following its request for an immediate trading halt on the ASX 200.
The trading halt means shares can’t be traded in the company, and an announcement will be made on the stock exchange on July 31.
Rex Airlines runs flights between major Australian city centres and regional and country towns. So far, flights are still in operation.
It previously received “substantial government support with no conditions attached.”
Australia’s transport minister, Catherine King, spoke to ABC News Breakfast on July 30. She said the government was keeping a close eye on what might happen next.
“You know, we think Rex is a pretty important part of the Australian aviation industry and stand ready to work with them to see whether there’s any assistance or anything the government needs to do,” she said.
In 2023 and 2024, the Skytrax World Airline Awards named Rex the best regional airline for customer service and excellence in Australia and the Pacific.
Ms. King said regional aviation was essential to Australia but recognised it was a “tough business.”
“Obviously we saw that with Bonza folding,” she said.
“We don’t want to see Rex fold, either, so we’re keeping a fairly close eye on it.
“But that’s what we know at this stage, and services are continuing.”
Ms. King’s sentiments were echoed by the prime minister, who told ABC that the government was aware of Rex’s importance to regional Australia.
Mr. Albanese vowed to work with the airline to maintain jobs with the company and remote flight routes that would otherwise be lacking in services.
Earlier in the month, Rex took to social media to promote its airfares from $69 (US$45). Last month, the airline announced two new routes: Perth to Melbourne and Perth to Adelaide.
The Epoch Times contacted Deloitte, a consulting firm Rex has reportedly enlisted to help turn the company around from years of weak profits. Deloitte referred The Epoch Times back to Rex.
In a previous statement of analysis in the wake of rival airline Bonza’s collapse, University of New South Wales experts Ian Douglas and Seena Sarram explained that Australian budget airlines often struggled to maintain operations.
Their report revealed that Australian budget and regional airlines tended to struggle as a result of a lack of population density, difficulties with airport access, and low populations in remote and regional areas.
A statement is expected to be made by the company on July 31.