Rex Airlines suspending trade causing concern among Tasmanian aviation and tourism industry

Tasmanian tourism bodies are hopeful Rex Airlines will be able to stay afloat, after it entered a trading halt. But one of its direct competitors says there should be limits on the help provided.

SYDNEY, AUSTRALIA. NewsWire Photos. July 30, 2024. Rex Airlines at Sydney domestic airport. The Australian airline is forced into a trading halt amid questions about its future. Picture: NewsWire / Jeremy Piper

Tasmania’s aviation and tourism industries are hopeful that an embattled regional airline will be able to stay afloat.

Rex Airlines is reportedly on the brink of financial collapse after suspending trading on the Australian share market on Monday.

The regional carrier is expected to make an announcement about its future on Wednesday.

Rex Airlines operates flights from Hobart, Burnie, Devonport and King Island to Melbourne.

In addition, the carrier also has a route between King Island and Burnie.

King Island Tourism Association president Adam Hely said the trading halt was concerning.

“They’re a regional airline that provides a great service to the island and they’re very important for regional Australia,” Mr Hely said.

“I think that there’s got to be ways of continuing or the federal government stepping in. I’m hoping for the best for them.”

King Island Airport.

On Tuesday, Prime Minister Anthony Albanese said his government would “examine any proposals” to help Rex.

The carrier’s King Island competitor, Sharp Airlines, called on the Albanese government to support Rex, but only on routes where it was the sole operator.

“For a number of years, operators like Sharp have been the subject of aggressive fare pricing and tactics by Rex,” a company spokesperson said.

“While Sharp has grown and remained viable during this period, this type of behaviour has obviously been unsustainable for Rex.”

Mr Hely, who also operates a hire car company on King Island, said that if the airline were to cease operating “it would cause us a lot of grief in regards to bookings”.

“Tourism is really starting to kick along here on the island, so it would have a massive impact.

“But, in saying that, the sort of demand for people to get over here may create an opportunity for others.

“But at this stage, I’d like to see Rex continue on. They’ve been doing a fabulous job for us.”

TasPorts chief executive Anthony Donald outside the TasPorts head office in Launceston. Picture: Stephanie Dalton

TasPorts own Devonport Airport, and the organisation’s CEO, Anthony Donald, said that as of midday Tuesday, it had not received any information from Rex.

“As it currently stands, there have been no changes to flight movements at Devonport Airport,” Mr Donald said.

“In the 2023-24 financial year, the airport welcomed 121,880 passengers – 17,771 came by Rex and 104,109 by Qantaslink.

“Any passengers with questions about flights are encouraged to contact the airline directly or the point of ticket purchase.”

Burnie Airport Manager Michael Wells said it was monitoring the situation and awaiting further announcements regarding the regional carrier.

“Rex is an important airline for Burnie and Tasmania and has served the Burnie region since the collapse of Ansett,” Mr Wells said.

“Services into Burnie are operating as normal.”

On April 30, budget airline Bonza was placed into voluntary administration after all its flights were grounded.

The company was officially liquidated on July 2 after administrators failed to find a buyer.

Originally published as Rex Airlines suspending trade causing concern among Tasmanian aviation and tourism industry