According to a report published on Tuesday, February 11, 2025, the Australian Government, led by Anthony Albanese, intends to announce as soon as February 12, 2025, that it is considering the purchase of a controlling stake in Rex Airlines, the beleaguered regional Australian carrier that serves many smaller and more rural communities across the country that would be isolated to a large degree should Rex services cease to exist. The deal is being seen as a last resort for Rex, which has been struggling financially since going into voluntary administration in July 2024.
Rex Airlines collapsed into administration following an ill-fated attempt to compete against Qantas/Jetstar and Virgin Australia on trunk routes linking the state capitals using its small fleet of Boeing 787-800 aircraft. This operation ceased once administrators were appointed with all the jet aircraft departing, leaving Rex with a fleet of 58 Saab SF340 turboprops.
According to the report published by The Conversation, despite administrators having worked tirelessly since then to secure a buyer for the airline, the government is expected to announce that to ensure continuity of operations, it will “work with shortlisted bidders on potential support to maximize the prospects of a sale.” This will be the second attempt to find a buyer for the embattled carrier after an initial attempt to sell Rex failed in late 2024.
![Rex Airlines Saab 340 Rex Airlines Saab 340](https://www.aerotime.aero/images/2024/11/Rex-Airlines-Saab-340-1200x800.jpg)
![Rex Airlines Saab 340 Rex Airlines Saab 340](https://www.aerotime.aero/images/2024/11/Rex-Airlines-Saab-340-1200x800.jpg)
While the exact nature of the support remains unclear, it is thought to be conditional on any potential bidders committing to provide an “ongoing, reasonable level of service to regional and remote communities”. The Government adds that any assistance it provides to Rex must also represent value for taxpayers’ money and there would have to be assurances from the potential buyer of good governance. Although the Australian Government is not currently a ‘live’ bidder in the ongoing sale process if a long-term buyer cannot be found, the Government is expected to go down an alternative route.
“In the event there is no sale, the Albanese government will undertake necessary work, in consultation with relevant state governments, on contingency options, including preparations necessary for potential Commonwealth acquisition,” a source told The Conversation.
Providing extra support
The government has already provided support for Rex by providing an extension to the exemption from the “use it or lose it” rule for slots used by Rex at Sydney Airport (SYD) for its regional flights, operated by its fleet of SF340 turboprops. The extension secures the airline’s access to those slots until October 24, 2026, meaning that its regional flight network from the airport can continue to operate without the risk of slots being confiscated.
![SydneyNswaustralia April22020ParkedRexSaab340 Rex Airlines](https://www.aerotime.aero/images/2025/02/Rx2.jpg)
![SydneyNswaustralia April22020ParkedRexSaab340 Rex Airlines](https://www.aerotime.aero/images/2025/02/Rx2.jpg)
Additionally, the Federal government has provided Rex with extensive financial support to keep it flying its regional routes while its long-term future is determined. This has included AUS$80 million ($50.4 million) in a loan to the administrator to keep various regional flights operating until June 30, 2025, as well as a buyout of AUD$50 million ($31.5 million) worth of debt from its biggest creditor, PAGAC Regulus Holdings Limited. These actions have essentially made the Australian Government Rex’s largest creditor.
“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,” said Anthony Albanese when speaking about the airline’s immediate prospects. “Regional Australians can be assured that our government will continue to fight to ensure these regional airfares remain available.”
“When markets fail or struggle to deliver for regional communities the government has a role to ensure people do not miss out on opportunities, education, and critical connections,” added Australian Transport Minister Catherine King.
![MelbourneAustraliaMarch2019RexRegionalIsASmallAirline Rex Airlines](https://www.aerotime.aero/images/2025/02/RX4.jpg)
![MelbourneAustraliaMarch2019RexRegionalIsASmallAirline Rex Airlines](https://www.aerotime.aero/images/2025/02/RX4.jpg)
The Federal Government of Australia has not owned shares in any airline since it divested its shares in flag carrier Qantas in August 1992. Any investment in Rex now would therefore be an about-turn, However, it would secure air links for numerous rural communities that have relied on Rex regional flights to link them with major towns and cities so they can access healthcare, conduct business, and visit friends and family living in the larger centers of population.