Rex Airlines goes into administration, raising fears for regional medical services

Regional airline Rex went into voluntary administration on Tuesday (30 July) and cancelled all flights between major cities, including its only Canberra flights to and from Melbourne.

The airline has said all regional flights remain scheduled, such as those to and from towns such as Griffith, Wagga and Merimbula.

“Virgin Australia has made an offer for Rex customers with an existing ticket on a flight cancelled due to the administration process the opportunity to transfer their ticket free of charge to the 13 overlapping Virgin Australia services,” Rex said in a statement.

“Eligible Rex customers who wish to take up Virgin Australia’s rebooking offer, must contact the Virgin Australia Guest Contact Centre on 13 67 89 or visit www.virginaustralia.com by Wednesday 14 August 2024.

“Eligible customers will be re-accommodated on Virgin Australia flights as close as practicable to their original time of travel. Holders of affected tickets should not come to the airport until they have rebooked their flights.”

Following a year of financial losses, the Australian stock exchange announced it had suspended trade in Rex’s shares on Monday. Accountancy firm Ernst & Young Australia (EY Australia) was appointed the administrator the following day.

Dene Beltrame, president of the Griffith Autism Support Group, says if Rex folds entirely and is forced to suspend flights to and from Griffith, it will cause a “major upheaval” for the town’s health services.

“If you go to the hospital, you’ll see we’ve got specialists flying in from big cities every day,” she said.

“Most fly with Rex as they’re the only airline that arrives early morning. If Rex goes, I don’t know what people would do, unless Qantas provide more services.”

Michael McCormack, Member for Riverina and former transport minister, echoed these sentiments.

“There are regional destinations that would have no flights if not for Rex,” he said.

“Without Rex, health professionals won’t be able to go to these towns, and people will die.

“During COVID, I was able to keep Rex in the air, during a critical juncture … no airline went belly-up under my watch while we were in government.

“The [current] Federal Government needs to step up with a financial package … Rex must continue to operate their regional flights. It’s of critical importance.

“Let’s see this government get serious about governing for all and not just capital cities.”

Federal Transport Minister Catherine King told ABC Radio on Wednesday (31 July) that Rex had not yet asked for financial assistance, but her department was working with the airline during the preceding 24 hours.

“They will come to us, we know, they will come to us with specific ask. We will need to look at those in detail. I think it is fair to say that we would be reluctant to just throw money at the problem. What we would want to do is ensure that there is a long-term solution to the security of regional aviation, and we will take time to work our way through that,” she said.

Independent MP for Wagga Joe McGirr also said governments should provide any support needed to keep regional air services at full capacity.

“It is essential to business, government services and recreational travel that our regional cities continue to be fully serviced by a number of airlines so that we have competitive and reliable air travel options now and into the future,” he said.

“These services are critical to our economy and lifestyle and all steps must be taken to deliver confidence that Rex can continue to fly to Wagga Wagga and other regional destinations.

“I have written to the Premier, asking him to investigate ways in which the government can work with Rex to help it through this crisis and guarantee the continuance of full services.”

Rob Robilliard, a Griffith flight instructor and aviation veteran, was not optimistic though.

“Rex will be finished by Christmas, that’s what I hear,” he said.

“We are already seeing flights getting dearer.”

He said Qantas might offer more flights to service Griffith, but would want to use bigger planes, which meant Griffith Airport would need to be upgraded to provide security screenings.

Rex and Qantas are currently the only airlines that service both Wagga and Griffith.

Qantas flights are generally less frequent and more expensive.