Rex Airlines has entered voluntary administration, with upcoming flights between capital cities grounded.

The regional airline has appointed EY, formerly known as Ernst & Young, as administrators.

The announcement impacts Rex’s Boeing 737 fleet, leading to the indefinite suspension of flights between major cities, including the cancellation of the Hobart-Melbourne route. The airline’s regional services, operated by the Saab 340 fleet, will continue as usual​. 

And as reported by the ABC, the Transport Workers Union is expecting “up to 850 jobs to be axed” because of the move.

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Passengers with tickets for the affected routes are being redirected to Virgin Australia for rebooking at no additional cost. Rebookings must be made by August 14.

The administration move follows significant financial struggles and a trading halt initiated earlier in the month. This situation has drawn attention from both state and federal governments, with officials expressing concern and willingness to provide support to ensure the continuity of essential regional services​.

Australia’s regional air transport network faces an uncertain future. Earlier this year, budget airline Bonza also entered voluntary administration after just over 12 months in the air.

Formed in 2002, Rex is Australia’s largest regional air carrier outside Qantas Group, serving all six states across Australia.

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