Transport Minister says government 'stands ready' to work with Rex Airlines
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More news: When asked whether the government is prepared to bail out Rex Airlines amid reports the carrier has appointed administrators, Prime Minister Anthony Albanese told reporters today that it would "examine any proposals".
"Rex receives substantial government support with no conditions attached," he added. "Rex, as a regional airline, of course, provides important links with regional communities — and particularly between capital cities and regional communities — it is important for those local economies."
Transport Minister Catherine King, meanwhile, told ABC News Breakfast the government was keeping an eye on an announcement from the airline expected tomorrow. "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 a statement, the opposition's transport spokeswoman Senator Bridget Mackenzie said the government must prevent Rex becoming "another Bonza debacle".
"After the fall of Bonza, we cannot afford for Rex to become another victim of Labor's poor economic management and dithering on reforms to the aviation sector," she said.
Rex Airlines to appoint EY as administrators: Bloomberg
The news: Regional Express Holdings is set to appoint Ernst & Young as administrators, Bloomberg reported.
On Monday, Rex entered a trading halt on the ASX, after The Australian reported the regional airline had appointed Deloitte's restructuring services.
The numbers: Rex shares last traded at $0.56 after falling 35% since the start of the year.
The context: EY's appointment could be announced as soon as Wednesday, Bloomberg reported, citing people familiar with the matter who asked not to be named.
The reports of Rex's difficulties come after another smaller Australian airline Bonza suspended operations and appointed administrators in April.
The source: Bloomberg
