Govt will consider acquiring Rex if airline is not sold
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The news: The federal government has indicated that a failure to secure a successful sale of Regional Express Holdings (Rex) could result in the Commonwealth acquiring the airline.
The context: The government is working with the administrators as part of the upcoming sale process and has indicated its intention to work with shortlisted bidders to maximise the prospects of a sale, subject to negotiation. This support from the government would be contingent on the buyer providing access to services in regional communities and value for money.
The government noted that it is not a bidder in this process but if there is no sale, it would at that point consider the government acquiring it as an option.
Rex has also been given a waiver of the “use it or lose it” test for regional flight spots at Sydney Airport. The waiver will ensure the slots are available until 24 October 2026.
The government has already provided Rex with an $80 million loan to ensure regional flight routes are operating until the end of June. It also acquired $50 million of debt from a major creditor.
What they said: Prime Minister Anthony Albanese said the government wants to ensure quality and crucial regional aviation services.
“We are working collaboratively with the administrators of REX to ensure that regional services continue beyond June 2025, including looking at what support the Commonwealth can provide," he said in a statement.
The source: Prime Minister media release
