Rex Airlines still flying out of Adelaide but major announcement on company’s future expected soon

Rex has suspended bookings on its capital flight services as staff report being refused entry into a company-designated hotel due to unpaid bills.

Rex has suspended bookings on its capital flight services amid news that the company halted trading on the ASX on Monday, with a major announcement expected soon.

A Rex employee speaking on the condition of anonymity confirmed online bookings of 737 services had ceased.

In a further example of Rex’s dire financial situation, the worker said crew members had been refused entry to a company-designated hotel at Brisbane Airport due to unpaid bills.

“The hotel manager informed them that Rex’s accounts had been suspended due to unpaid bills,” said the employee.

“Currently, employees have not received any official communication regarding these issues.”

Rex Airlines, which operates as an essential regional airline throughout Australia, expanded its operations in March 2021, flying 737s between major city routes.

The airline could be on the brink of collapse after losing close to a million dollars a week on the ambitious expansion, which was launched at the height of the Covid pandemic.

The Advertiser understands that flights to and from Adelaide Airport have remained as normal throughout Tuesday, with the airport awaiting an announcement by Rex on the airline’s future expected soon.

Rex Airlines expanded its operations in 2021 to included routes between major cities recording a $1 million loss per week based on the expansion. Picture: NewsWire / Jeremy Piper

On Tuesday, Prime Minister Anthony Albanese said the government was “concerned about Rex”, as the airline was an essential carrier for regional areas.

He said the government had previously supported the airline to expand into major city routes with “no conditions” attached, and that the situation was being monitored closely.

“It’s important for those local economies, so we want to see the aviation industry in Australia continue to be one that provides those services and that access,” he said.

“One of the things that I expressed concern about was that (there was) no conditions, so that Rex, for example, moved away from their traditional role of being a regional airline into flights, for example, from Sydney to Melbourne.

“But we know with Rex, we are engaging as a government through the department and through Minister (Catherine) King, who I’ve spoken with again this morning, I met with yesterday afternoon about these issues, and certainly we will continue to work these issues through.”

Rex flights from Adelaide to other major cities include Sydney, Melbourne and Brisbane and Perth. Regional destinations include Port Lincoln, Broken Hill, Mount Gambier, Ceduna and Coober Pedy.

Rex flights also operate as an essential transport service for mining workers throughout Australia, with the carrier being the main airline operator for mines in SA.

The airline requested a trading halt on Monday following speculation it has appointed Deloitte consultants to turnaround its financial woes.

More to come.