Regional Qld routes secure following $80m funding from Albanese Government

Rex Airlines has been issued $80m in funding in news that has big implications for Queensland.

A passenger checks in for a Rex Airlines flight in July. Picture: William WEST / AFP

The Albanese government has issued $80m in funding to Rex Airlines following the carrier’s announcement to extend Voluntary Administration, securing the future of critical regional routes for Queenslanders.

Administrators of Rex announced they intend to apply to the court for an extension of the Voluntary Administration through to June 30, 2025.

The request for an extension has been supported by an $80 million financing facility provided by the Australian government.

The funding and extension application will affect all Rex routes, including providing security for Queenslanders relying on the sunshine state’s regional routes.

All of the carrier’s regional routes will continue as normal.

Additionally, the extension will support the administrators to secure a commercial future for the airline, with former employees to shortly receive payment of leave, notice and redundancy entitlements, or immediate access to the Federal Government’s Fair Entitlement Guarantee.

Rex Airlines staff have had a nervous wait in recent months. Picture: William WEST / AFP

Funding and an extension of the VA would be used to invest in a business improvement program, including increasing the number of operational aircraft and optimising the regional sector.

The nation’s third-largest carrier underwent voluntary administration in July 2024, which led to more than 600 jobs being cut and doubt arising of its ability to keep regional Australia connected to the nation’s capital.

Infrastructure and Transport Minister Catherine King and Workplace Relations Minister Murray Watt said on Tuesday the financing would “support the business to continue offering critical services for regional communities”.

They said employees let go during the voluntary administration would get “early access” to the Fair Entitlements Guarantee, which offers Commonwealth-backed redundancy pay in dire situations.

Rex Airlines Boeing 737 planes lay idle on the tarmac in July. Picture: William WEST / AFP

“In addition, Rex’s administrators and main secured creditor PAG have advised they will pay the entitlements of former employees of the regional business who have been made redundant during the Voluntary Administration period,” the federal ministers said.

With Rex’s administrators hoping to extend the administration period until June 30, 2025, the government has committed to continuing “to guarantee ticket sales made throughout the voluntary administration” until the end of the extension.

“The guarantee has been effective so far and has yet to be used with flight bookings holding up well,” both Ms King and Mr Watt said.

“Today’s announcement is another demonstration of our commitment to maintaining regional aviation access, recognising the important role that Rex plays in regional communities right across Australia.”

Rex’s administration process is progressing, with the recent sale of Pel-Air Aviation Pty Limited to Helicorp Pty Ltd, part of Toll Aviation, with proceeds from the sale being used to repay secured creditors.

The financing will support the business to continue offering critical services for regional communities, with Rex’s administrators intending to apply to the Federal Court of Australia to extend the Voluntary Administration to June 30, 2025.

Voluntary Administrators, EY partner Sam Freeman thanked Federal Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King for her support.

“This Australian Government financing facility will enable us to continue to support regional

communities through an extension of the voluntary administration,” he said.

Rex Airlines crew. Picture: Instagram

Mr Freeman reinforced the administrator’s commitment to the regional and remote communities the Rex regional network connects.

“Importantly, as we’ve demonstrated throughout the voluntary administration – an extension will not disrupt the continued operation of the regional network, which is such a critical part of regional and rural Australia’s connectivity. The actions to be undertaken in the extension period are expected to enhance the network,” he said.

“This is all only possible thanks to our dedicated customers, the amazing Rex team members and the support of the Australian Government. We’d like to thank them, as well as our merchants and suppliers who have provided overwhelming support and made this possible.”

Flight Centre Corporate COO Melissa Elf said the Queensland regional areas of Roma and Mt Isa were seeing significant volumes of travel.

“REX’s regional service is critical to communities and businesses across Australia, particularly for mining, construction, health, government and not-for-profit industries,” she said.

“The demand for regional travel has not slowed, and it remains a very important component of the Australian economy.

“Flight Centre Corporate books tens of thousands of travellers into regional destinations every month, and Rex has long been a trusted carrier for those who frequent regional cities.

“Regional communities are heavily reliant on carriers like Rex, which are oftentimes their only way of a timely connection to our major cities.

“With much of Australia’s economy buoyed by mining and critical minerals, agriculture and manufacturing, seeing travel growing across our regions is a promising sign for the broader economy.

“I anticipate we’ll continue seeing an uptick in businesses travelling regionally into next year and beyond, as the promising growth of many regional communities will likely bring with it increased investment in infrastructure, technology, tourism, transport and housing that will prove rewarding for businesses.”

Originally published as Regional Qld routes secure following $80m funding from Albanese Government