Last-ditch effort to save Rex Airlines after the regional carrier went bust

The Albanian government has been called on to buy out beleaguered airline Rex after the regional carrier went into voluntary administration in July.

Up to 71 percent of Australians support further government intervention to ensure Rex Airlines can continue to serve regional routes, a new poll has found.

Only 10 percent of respondents disagreed with the statement, while the remaining 19 percent said they “didn’t know.”

Three-quarters of the 1,044 respondents to the YouGov survey said the government should take an equity stake if it is to rescue troubled companies such as Rex.

Meanwhile, 74 percent of respondents also said there was a need for a new independent commission to set standards for aviation jobs and services, which would be separate from the proposed ombudsman scheme put forward by Transport Minister Catherine King.

Transport Workers Union national secretary Michael Kaine said the poll was evidence that Labor had a mandate to buy into the airline.

“Regional Australia needs Rex, and this poll shows there is overwhelming support for the federal government to step in and secure its future,” he said.

‘Not only are hundreds of aviation jobs at stake, but these routes are vital to Australia’s regional business, tourism, healthcare and community services. The federal government needs to keep Rex flying.”

Transport Minister Catherine King (pictured with Anthony Albanese) says she has not ruled out the government buying a stake in Rex Airlines after the airline went bankrupt in August.

Since Rex’s collapse, EY Australia administrators Samuel Freeman, Justin Walsh and Adam Nikitins have been tasked with finding another buyer for the airline, which has an extended deadline of November 25.

In the meantime, the government has guaranteed the continuation of the airline’s regional flights.

Following the collapse of Rex, customers who had purchased inter-capital fares were also allowed to rebook through Virgin Australia and Qantas at no extra cost.

Ms King has left the door open to a possible government buy-in, saying “no options are off the table”.

But she said the government would like to see a “market-led solution”.

“Regional aviation is critical to keeping Australians connected to their families, jobs and services,” she said.

“We are working closely with Rex’s administrators and have taken action to guarantee regional tickets through the administration, ensuring Rex retains its regional NSW slots at Sydney Airport.”

Opposition spokeswoman for transport and regional development Bridget McKenzie said the Government must release more details and ensure regional routes are maintained.

‘The Albanian government has been silent for months about the collapse of Rex Airlines, leaving regional Australians with little confidence. “Labor has plans to rebuild our aviation sector after not one but two regional airlines collapsed this year,” she said.

“The Prime Minister is shirking his responsibilities to regional Australia and has not outlined how his government will ensure that no regional community is cut off or left worse off.”

Labor Secretary of Transportation Catherine King (pictured) has left the door open to a possible government buyout, saying “no options are off the table.”

Senator McKenzie has previously highlighted the need for greater scrutiny of competition in the airline industry, saying Rex’s demise was partly due to its inability to break into routes to Brisbane, Melbourne and Sydney, which were dominated by Qantas and Virgin .

Despite this, the coalition has said airline divestment powers, aimed at breaking up Qantas, were not part of its policy agenda.

Following the collapse of budget airline Bonza in July and Tigerair in 2020, Kaine said the unrest in the sector showed the need for an independent industry commission, with the TWU calling for a Safe & Secure Skies Commission.

Mr Kaine said the taskforce would help set “decent standards for the industry”.

“The ongoing instability in this sector, caused by Qantas ruthlessly pursuing profit and crushing new entrants, is creating deep uncertainty for aviation workers and the wider public,” he said.

“The federal government must come up with a long-term solution that provides certainty for regional Australia, and ensures decent standards for workers and the traveling public.”