Regional Express follows Qantas to stand down workers as aviation hits Covid turbulence

Regional Express is set to follow Qantas and stand down hundreds of workers in response to the severe impact of lockdowns and border closures on domestic aviation.

Rex is expected to announce the stand down of hundreds of staff after suspending its Boeing 737 operations last month.

Regional Express Airlines is set to follow Qantas and stand down hundreds of workers, after slashing its flying schedule to the bone in response to border closures and lockdowns.

Although exact numbers were not able to be confirmed on Tuesday, most of the stand-downs were expected to come from Rex’s new Boeing 737 operations, which were suspended last month.

Since embarking on an expansion into capital city and Gold Coast routes earlier this year, Rex has hired about 400 staff and taken delivery of six former Virgin Australia 737s.

Two more are due to be delivered by the end of the month, taking the airline’s narrow-body jet fleet to eight.

In a statement to the ASX, Rex said it would be implementing temporary stand downs after consultations with those affected.

The carrier also updated its guidance for the 2021 financial year, after a “significant impact on revenue” from lockdowns and border closures in June.

Instead of a $15m loss, Rex is now on track for an $18m loss.

The forecast result is a dramatic turnaround from the carrier’s $9.9m first-half profit, which was aided by federal government assistance.

Any workers stood down would likely be eligible for the government’s Covid-19 disaster payment, following an extension of assistance to the aviation industry.

The $750 a week payment for airline crew affected by city lockdowns was announced last week, a day before Qantas said it would stand down 2500 pilots, cabin crew and airport staff.

Virgin Australia is expected to follow suit, but a spokeswoman said the company was continuing to discuss with unions the best approach to managing the reduction in flying and available work hours.

Gold Coast Airport didn’t have a single flight scheduled in or out on Tuesday. Picture: Scott Powick

Mass flight cancellations have taken a heavy toll on not only airlines but airports as well, with Gold Coast Airport shutting its doors on Tuesday.

Normally Australia’s sixth busiest airport, not a single flight was scheduled to land or take off from the Gold Coast, and only two were expected on Wednesday.

Queensland Airports Limited chief executive Chris Mills said the dramatic downturn followed a partial recovery in April and May before borders again closed to key interstate markets.

“Given the conditions in those markets, we have seen no improvement since the south east Queensland lockdown ended on Sunday afternoon” Mr Mills said.

“The Gold Coast is well positioned to attract visitors once confidence to travel is restored, but it remains unclear when that will be.”

Mr Mills said anxiety around air travel is now just as bad as it was during the worst of the pandemic last year when the airport could count daily passengers on one or two hands.

“We are steeling ourselves for conditions to fluctuate for some time to come, as lockdowns and multiple border closures impact Gold Coast Airport’s markets,” he said.

In a small boost for the industry, the SkyTrax annual world airport awards named Melbourne and Sydney as two of the best “Covid-safe” gateways in the world, in recognition of enhanced cleaning systems, social distancing and other customer safety measures.

Melbourne also took out best airport in the region and Brisbane Airport landed the “best staff” award for the Australia-Pacific.

Doha Hamad International Airport was named the world’s best, ahead of Tokyo Haneda and Singapore Changi.

Originally published as Regional Express follows Qantas to stand down workers as aviation hits Covid turbulence