Rex Airlines saved for now as Anthony Albanese’s government hands over cash

The government has stepped in to rescue regional airline Rex after it went into voluntary receivership with debts of about $500 million.

Transport Minister Catherine King announced government funding for the airline on Thursday afternoon to provide certainty for regional travellers.

“Continuing Rex is in Australia’s best interests and the government is working closely with leaders to ensure a strong regional aviation presence now and in the future,” she said in a statement.

This guarantee ensures that if Rex Airlines bookings to or from a regional destination are cancelled during the administration period, passengers will receive a full refund.

It includes all regional flight bookings after Rex went into voluntary bankruptcy at 9:31 p.m. on July 30.

In addition to financial support, Ms King said her department would continue to work with the administrator, EY, on plans for the airline’s survival.

“We also expect the administrator to respect and prioritize the rights of Rex employees,” she said.

“This assurance is a message to regional Australia that we know how important reliable aviation services are to you and we will not allow your communities to be left behind.”