Aviation response taskforce set up within government to oversee Rex rescue

The government’s support for Rex now includes a secretive task force of highly paid public servants, with the sole aim of keeping the carrier going.

In a further blow to regional airlines facing competition from a government-controlled Rex, it’s been revealed a dedicated task force has been set up within the Transport Department to oversee the failed carrier’s rescue.

The Aviation Response Taskforce, as it’s called, is made up of three of the government’s most senior public servants, paid a combined salary of more than $1m.

Former Transport Group deputy secretary Marisa Purvis-Smith is listed as the head of the taskforce, along with first assistant secretary Stephanie Werner and assistant secretary Daniel Caruso.

A spokeswoman for the Department of Infrastructure, Transport Regional Development, Communications and the Arts confirmed the taskforce was “responsible for the Australian government’s response to Rex airlines entering voluntary administration”.

No further details of the taskforce’s composition or role were provided in response to questions from The Australian, or on the government website.

Senior public servant Marisa Purvis-Smith is heading a secretive ‘aviation response task force’ set up to ensure Rex survives. Picture: Martin Ollman

It comes amid growing anger among other regional carriers about the financial support for Rex, which was taken into administration on July 30 with debts in excess of $500m.

In a further controversy, the Australian Securities and Investments Commission recently launched legal action against four former directors of Rex for allegedly engaging in deceptive and misleading conduct in relation to ASX announcements.

To date several parts of the so-called “Frankenstein” company have been sold off, including aeromedical business Pel-Air and fly-in, fly-out operator National Jet Express, for an estimated $60m combined.

But, as yet, no buyers have emerged for the regional airline and its fleet of 57 Saab 340s, more than half of which are currently parked at airports around the country, awaiting parts, engines or other maintenance.

The Saabs have an average age of 30.5 years, with the oldest 35 years (VH-OLL) and the youngest 26.3 years (VH-ZPO).

In an effort to find a buyer, administrators EY have been granted until June 30, 2025 to conduct a second creditors meeting.

A government financing facility of $80m has been established to help see the regional airline through until then, on top of a “government guarantee” for passengers, assuring them of a refund in the event of flight cancellations.

It’s understood the government has also agreed to buy out major creditor PAG Asia Capital, which invested $120m in Rex.

The support has created concerns among other operators, including Skytrans and Sharp Airlines, the government is creating an uneven playing field for regional carriers.

Regional Aviation Association of Australia chief executive Rob Walker said the Rex administration had highlighted how difficult it was to operate a financially sustainable regional airline.

“It’s getting increasingly hard to operate regional services in this country for a whole number of reasons and the point the association would like to remind government about is, it needs to be a level playing field,” Mr Walker said.

“All regional operators need to be given the same opportunity for financial assistance if we’re going to continue to provide these regional services.”

Mr Walker was due to meet with Ms Werner on Friday to discuss the situation.

Transport Minister Catherine King has previously said “all options were on the table” for government with regards to Rex, and they would not allow the regional services to end.

Originally published as Aviation response taskforce set up within government to oversee Rex rescue