Australians fly more air miles per head than Americans, Japanese or Brits, and airfares and airline competition matter to voters. The Albanese government, very anxious to avoid two regional airlines failing in the year before an election – Sunshine Coast-based Bonza collapsed in May – has handed $80 million to Regional Express to keep flying until after voters go to the polls next year.
Rex went into administration in July. Its ambitious attempt to take on Qantas in the Brisbane-Sydney-Melbourne “golden triangle”, capitalising on the collapse of Virgin into administration during the pandemic, failed. But Rex’s core business is in the bush, where many voters would expect the government to ensure the continuation of what they consider an essential transport service.