Opinion: It’s time to let Rex die

In my five years at Australian Aviation, there have been some highlights. On Alan Joyce (his great nemesis), Sharp withered that it was “amazing he could look at himself in the mirror some mornings”. On Bonza, he argued he “couldn’t imagine” why anyone would fly their route from Coffs Harbour and the Sunshine Coast. And on Virgin CEO Jayne Hrdlicka, he said she put “both feet in her mouth” after she made some clumsy comments on COVID border closures. To his detractors, Sharp is simply an obnoxious, offensive man trying to make a name for himself. But to his fans, me included, he’s actually trying to earn his airline some publicity with comments that are clearly meant in jest.

Frankly, he gives a dry sense of humour a good name.

A couple of years ago, I asked him directly – does he take satisfaction poking his rivals so hard? “We’ve had some tremendous fun in the last 18 months or so with our public utterances,” he admitted. “I’ve enjoyed it enormously. We do it not because we want to say these things but because we want to survive. We want to grow. And that’s our purpose. And that’s why I know we will ultimately succeed in this. It’s just a question of patience and a modicum of luck. And if there’s one thing I’ve learned in life, it’s that perseverance is a very substantial quality to have, and that’s one thing Rex has proven we have.”

The problem is that, after 20 years, it appears Rex’s luck, and time, is finally out – with the airline now having been languishing in administration for months, with no buyer seemingly interested. From the outside, it appears the carrier’s move into capital city 737 flights was a step too far, while its ageing fleet is so decrepit finding replacement parts is near impossible. For Rex lovers like me, the end was as blockbuster as I would have hoped – with a public row breaking out between Sharp and Rex’s biggest shareholder Lim Kim Hai. According to an email leaked to the AFR, Sharp claimed Lim “lives in a world where he is God”. Ouch.

That, really, should be that for Rex, as it taxis to the desert boneyard in the sky. But, incredibly, the federal government seems determined to keep it alive. Last month, for example, Labor gave the airline an $80 million lifeline, and its administrator, EY, even hinted the money could be used to renew its fleet with shiny new turboprops. Of course, this isn’t completely a surprise – Rex flies many exclusive routes necessary to keep regional towns alive – but it nonetheless feels very unfair to its smaller rivals. The government is, quite shamelessly, picking winners.

Days before this magazine went to print, regional rival Sharp sent me a statement calling the bailout “extremely disappointing” and arguing Labor should offer the industry as a whole money to ensure an “even playing field for all operators”.

“The management of Rex’s failed ambitions to directly take on Qantas and Virgin on domestic routes has greatly contributed to their current financial situation and their voluntary administration,” said CEO Alistair Dorward. And you know what? He’s quite right. The situation is even more perilous for the government because other rivals have hinted they could potentially shift into Rex’s exclusive routes – thereby offering local towns a lifeline – but will only make the move after the carrier is liquidated. Cairns-based regional carrier Hinterland Aviation adds it has the fleet to act quickly, with larger aircraft on the way soon, while Skytrans and Sharp are also keen.

Labor, then, is in a tricky position. Does it save Rex, at great cost to the taxpayer, to guarantee vital routes are saved? Or, does it let Rex die and hope its rivals aren’t bluffing about moving into its network? I’d like to think John, the proud old soldier and former Nationals Transport Minister, would prefer a glorious death on the battlefield than a handout from his political nemesis.

“Competition is competition,” he once told me. “And don’t we want it? Of course, we do.”