‘No one left behind’: Government will cover any refund Rex airline cannot pay

The federal government has made a big call for customers booked to travel on this struggling Aussie carrier.

Rex customers will be able to fly with confidence after the federal government agreed to guarantee ticket fares while the regional airline tries to battle its way out of administration.

Announced on Thursday, the federal government will cover the cost of Rex tickets where no flight alternative is offered and Rex itself cannot pay a refund if a flight cannot go ahead.

Regional Express, better known as Rex, went into voluntary administration two weeks ago, grounding its Boeing 737 flights between the capital cities.

Flights to and from regional cities on smaller planes have continued while administrators comb through the books and look for a buyer.

Rex has more than 1200 staff, whose job future is unknown. Picture: NewsWire / Jeremy Piper

On Thursday the government stepped in, guaranteeing consumers’ money tied up with the uncertain future of the airline.

If a Rex flight is cancelled and not rescheduled, and no alternative service is available, the government will cover the refund or chargeback if Rex cannot pay the money back.

In parliament, 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.

Transport Minister Catherine King says backing the airline’s regional operations is crucial. Picture: NewsWire / Max Mason-Hubers

Rex flies 41 passenger and freight routes to regional and remote airstrips, including 21 routes where they are the sole provider.

Ms King reiterated the government expected the Rex administrators to prioritise entitlements for its 1200 employees.

Rex’s administrator, Sam Freeman, said it was unlikely a Rex flight would not be delivered going forward.

“The federal government’s flight booking guarantee will give Australians confidence to continue booking to or from a regional destination on Rex, ensuring that in the unlikely event that their service is not delivered – they will be entitled to receive a full refund,” he said.

In the event Rex cannot find another flight for customers or pay a refund - on tickets booked after July 30 - the government will pay the refund. Picture: NewsWire / Jeremy Piper

The government backing would also help the administrators rejuggle the books.

“The guarantee will help Rex to keep flying while we undertake the recapitalisation of the airline and secure its future,” Mr Freeman said.

“We’re currently undertaking a process to find an investor committed to a sustainable commercial regional network.

“We have experienced first-hand the importance of Rex’s regional services to the communities the airline serves and would like to express our gratitude to the federal government for stepping in with this support.”