More jobs at Rex expected to be cut as staff meet with administrators

More than 70 airline employees could be facing further redundancies, weeks after Rex fell into voluntary administration.

Embattled regional airline Rex is expected to slash more than 70 more jobs than originally planned when the company fell into voluntary administration last month.

Ernst and Young administrators took over the troubled business in an effort to save the airline from collapse, which included cutting a total of 594 jobs from the airline’s domestic business.

However, a further 73 jobs are expected to be cut after an email was sent to the remaining 261 employees on Monday, according to the ABC after viewing the email.

More jobs are expected to be cut at Rex. Picture: NewsWire / Jeremy Piper

“At this stage, subject to the outcome of a consultation process, it is proposed that 73 of 261 current positions will become redundant,” the email stated.

“No decisions have been made about which employees will be retrenched as a result of the redundancy of any position.

“No final decision will be confirmed in relation to the proposed structure until we complete this consultation process.”

It’s understood a meeting between administrators and the 261 affected staff will be held at 4.30pm on Monday.

Those jobs that are set to be made redundant include aircraft support officers and team leaders, customer services officers, ground school trainees, flight/pilot trainees and call centre operators.

It comes after Rex chairman John Sharp filed a complaint with the Australian Federal Police against the airline’s former chairman.

Rex chairman John Sharp has filed a complaint with the Australian Federal Police against the airline’s former chairman. Picture: Tim Hunter.

The criminal behaviour complaint, filed on August 12, is in relation to a recording former chairman Lim Kim Hai allegedly made of the final Rex board meeting.

Mr Hai offered the recording to a journalist, according to The Australian.

Directors were reportedly made aware of the recording at the July 30 meeting where a vote was made to appoint Ernst & Young as voluntary administrators.

The Australian reported that Mr Lim told directors that he would use the recording in legal proceedings against them; however, Mr Lim was advised the recording was illegal as consent wasn’t given to record.

The complaint was made after Mr Sharp was made aware of Mr Lim’s plans to give the recording to a journalist.

An AFP spokesperson confirmed a report was received on August 12 but declined to comment further.

NewsWire has contacted the EY voluntary administrators for comment.

The Rex board last June dumped Mr Lim in favour of Mr Sharp. Mr Lim then signalled he wanted his old job back and Mr Sharp and three other directors ousted at an extraordinary general meeting, which is yet to take place.

The criminal behaviour complaint, filed on August 12, is in relation to a recording former chairman Lim Kim Hai allegedly made of the final Rex board meeting. Picture: NewsWire / Jeremy Piper

Rex flights between capital cities were grounded as the airline went under at the end of July; however, flights to and from regional cities on smaller planes have continued.

The federal government has since stepped in, vowing to cover the refund or chargeback if a Rex flight is cancelled and not rescheduled, where no other alternative is available.

In parliament last Thursday, Transport and Regional Development Minister Catherine King said the guarantee was a backing for regional Australians “so nobody is left behind”.

The guarantee is for all regional flight bookings with Rex made after the moment it entered voluntary administration at 9.31pm on July 30, 2024.

Originally published as More jobs at Rex expected to be cut as staff meet with administrators