Urgent warning issued to Rex passengers as the airline goes bust: Here’s what you need to know to rebook your ticket with Virgin Australia NOW

Thousands of Regional Express customers are searching for new flights after the airline declared voluntary bankruptcy and canceled flights between major cities.

Rex’s regional flights are operating as usual and Virgin Australia has made a contribution to allow customers booked to capital cities to transfer to alternative flights free of charge.

Virgin Australia said 4,600 Rex customers had contacted them for assistance early on Wednesday morning and 500 new flights had already been booked.

Rex’s regional Saab 340 flights are unaffected and are still operating. However, its 737 services, which serve major cities, including the busy Sydney to Melbourne route that the airline began operating in 2021, have been grounded.

All rebooking requests with Virgin must be submitted before August 14, 2024.

Virgin Australia CEO Jayne Hrdlicka said Rex should have contacted affected customers by now and Virgin staff were on hand to clear up the confusion.

“All they have to do is call and rebook their flight and show them they have a Rex booking reference number which they can use to rebook with us,” she told ABC radio.

“We try to accommodate people as close to their departure time as possible.”

Affected Rex customers can also visit the Virgin Australia website to rebook their tickets.

Rex and Virgin Australia are exploring ways to support regional customers. This could include reselling Rex’s regional services through Virgin via codeshare or interline arrangements and making Virgin frequent flyer benefits available.

A statement posted on Rex’s website on Tuesday evening said the government was affecting its parent company Regional Express Holdings Limited and a number of subsidiaries trading as Rex Group.

Samuel Freeman, Justin Walsh and Adam Nikitins from Ernst & Young Australia have been appointed joint administrators by the Rex board.

Rex employs around 2,000 people and Virgin is offering employees affected by the grounded 737s the chance to apply for open positions via the airline’s website.

Michael Kaine, national secretary of the Transport Workers Union, said it was a difficult day for Rex staff.

“We are back in this situation… aviation seems to be in crisis,” he told ABC TV.

‘What we want to do is figure out, with our shoulders to the wheel, what we can do to minimise their anxiety… Virgin is taking steps to accept expressions of interest from employees, and that’s really critical.’

Treasurer Jim Chalmers said it was a “great relief” that Rex will continue to serve regional areas while the company is in administration.

The federal government has spoken to the airline about a support package, he added.

“There have obviously been discussions but… we would like to hear from the company,” Dr Chalmers told ABC TV.

“Our top priority is to ensure that we can continue to serve and support regional communities and regional economies. We know how important that is. We are prepared to play a constructive role.”

On Tuesday, Prime Minister Anthony Albanese questioned the airline’s expansion into major capital city routes.

He noted that Rex had received significant government funding during the pandemic “with no strings attached.”

“One of the things I expressed my concerns about was that there would be no conditions, which is why Rex moved away from its traditional role as a regional airline and now operates flights from Sydney to Melbourne, for example,” Mr Albanese said.

Virgin Australia has rebooked passengers scheduled to fly domestically on a Rex 737 for free, but they must rebook by August 14

Nationals Senator Bridget McKenzie said Rex’s foray into the capital city market, including a recent route from Melbourne to Perth, had increased competition between airlines, resulting in cheaper fares being offered by Qantas.

“Let’s stop pretending that Qantas’ behaviour is acceptable in the aviation industry,” Senator McKenzie said.

“Every time they are challenged, they try to beat airlines like Rex… who want to offer Australians a different way to travel.”

Rex began serving Sydney to Melbourne, one of the world’s busiest routes, in 2021.

Many regional communities rely on the airline, which was formed 22 years ago after the demise of Ansett.

Unlike Bonza, which went bankrupt in April, Rex is primarily the owner of the aircraft rather than a leaser.

Rex’s main fleet consists of 61 SAAB 340s and seven leased Boeing 737-800s, out of 123 aircraft.

Since the pandemic, Rex has struggled with profitability. In February, the company reported a net loss of $3.2 million for the first half of its 2023/24 financial year.