Prime Minister Anthony Albanese has confirmed his government will look to acquire Regional Express Holdings (Rex) Airlines if no other buyers emerge, in what would be a lifeline for a company.
The Albanese government will get involved with a shortlist of bidders between now and July for a second round of sale negotiations as the Commonwealth looks to provide an incentives package within the deal.
If a sale is not made before July, the government will work with state governments to potentially come up with a plan for a Commonwealth acquisition.
The 23-year-old airline was placed into administration in July of 2024 with debts blowing out to $500m.
If no private buyers acquire the airline, this will mean it is the first time the Australian government will own an airline since Qantas was privatised in 1990.
Mr Albanese said Rex Airlines deserved to receive “quality and crucial” regional aviation services.
“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,” he said in a statement.
“Regional Australians can be assured that our government will continue to fight to ensure these regional airfares remain available.”
The Albanese government will help Rex’s administrators to secure a sale and negotiate with bidders.
The Prime Minister reaffirmed the news at a press conference in Merimbula on NSW’s south coast, claiming the collapse of Rex endangered regional communities.
“The collapse of Rex that we have seen endangers access of these regional communities throughout Australia to our capital cities and to the connectivity that is so vital for the quality of life and vital for local economies as well,” he said on Wednesday morning.
Mr Albanese made it very clear that his government would prefer for the private sector to be successful in a bid.
He assured regional communities would not be abandoned during this time.
Infrastructure and Transport Minister Catherine King said, alongside the Prime Minister, there will be a competitive process for bidding for Rex alongside an incentive package from the Commonwealth government for successful bidders.
“The first sales process was not successful, there were people who were interested but then didn’t put in a credible bid,” she said.
“What we are signalling here through this process is we are looking far and wide and the administrators are looking far and wide, but also know that there will need to be incentives in place for some bidders.”
Deputy Opposition Leader Sussan Ley said on Sky News Australia governments shouldn’t own airlines because taxpayers will own and pay for them.
Ms Ley said its vital for the government to get policy and regulatory settings right if Rex wants to stay afloat.
“The most important thing for a government with airline policy is to get the policy and regulatory settings right. So that you do have a sustainable and competitive aviation sector,” she said.
“Doesn’t feel to me the government has got this right at all with two regional airlines going bust on their watch.
“This has just been another failure of management, including airline management by the Albanese government.”
Ms Ley said a Liberal government would put regional aviation “front and centre”.
“We always put regional communities first and we know we have to have secure and affordable transport for those who live a long way from the capital cities,” she said.
“Whenever its tough times for an airline, you always think of the pilots, the crew and you think of the people who work incredibly hard to get people where they need to go through our open skies in Australia.”
So far, the Albanese government has loaded $130 into Rex so they can continue operating regional flights across the country.
The crucial service is the middleman for many regional and remote Aussies, with the company operating routes from Parkes to Sydney in NSW, Mildura to Melbourne in Victoria and Mount Isa in Queensland.
The Albanese government will also continue to provide support through a waiver of the “use it or lose it” test for Rex’s regional flight slots at Sydney Airport until October 24, 2026.
Other carriers must use at least 80 per cent of their slots or relinquish them to other airlines.
The Transport Workers’ Union has welcomed a long-term solution to save Rex Airlines in a bid to “safeguard jobs and provide certainty” for regional Australians.
National Secretary of TWU Michael Kaine said it was huge news for aviation industry with workers, businesses and community to have certainty of the airlines survival.
“This is a vital step towards a future where aviation actually works for the people of this country, not its overpaid executives,” he said.
“It is hugely promising to see the Federal Government investing in the future of regional Australia and the aviation industry and making sure that Rex can keep flying its critical routes long-term.”