The Australian government has allocated AUD $80 million (USD $52.3 million) to support Rex Airlines in maintaining critical regional services as the airline continues under voluntary administration. The funding, announced by Minister for Transport Catherine King and Minister for Employment Murray Watt on November 12, 2024, aims to stabilize the airline’s operations for regional communities reliant on its services.
The financial boost is anticipated to assist administrators in seeking court approval to extend the voluntary administration period through June 30, 2025. Rex Airlines, which has been struggling financially, expressed gratitude in a statement issued by its administrator, Samuel Freeman of Ernst & Young Australia (EY Australia). Freeman emphasized that the funds will be directed toward a business improvement program to enhance operational resilience and increase fleet capacity.
While the administration extension supports the airline’s restructuring efforts, administrators clarified that the sale process for Rex’s regional network remains ongoing. However, the immediate focus is on implementing the business improvement plan to secure the airline’s long-term viability and benefit regional communities.