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Returning transport minister Catherine King has hinted that preserving Rex will be top priority in her second term.
In a statement issued after her reappointment, King stated that “preserving regional aviation” would form part of a “significant agenda” during the next three years.
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It comes after the Albanese government repeatedly committed to nationalising Rex should the collapsed airline fail to find a buyer again.
The last budget, for example, stated that “in the event there is no sale, the government will undertake work on contingency options in consultation with relevant states, including preparations necessary for potential Australian government acquisition of Rex”.
The federal government had already extended $80 million in funding to keep Rex in the air, as well as buying $50 million of its debt from financier PAG to ensure it had the final say in what happens when the airline’s administration period ends.
A private sale process is still thought to be underway.
“The Government is providing up to $130 million in secured loans to keep Rex Airlines operational during its extended voluntary administration to 30 June 2025, while a competitive sale process is held,” the government said previously.
“This will help maintain critical aviation services for regional and remote communities.”
The news followed the sale of Rex’s aeromedical arm, Pel-Air, to Toll Aviation for $47 million in October last year, as well as the sale of Rex’s shares in FIFO firm National Jet Express (NJE) to former executive chairman Lim Kim Hai and the purchase of its simulator centre by Navinci Group.
King’s new statement reads, “In our first three years, we embarked on a transformative agenda to reform commonwealth infrastructure investment and return discipline to investment decisions.
“This included reforming the infrastructure pipeline so Australians can have confidence projects can be delivered when they are promised, and securing new five-year funding agreements with the jurisdictions that require infrastructure investments to be properly planned and costed.
“In transport, we embarked on significant reform to Australia’s aviation industry, including reforms to the slot system at Sydney Airport for the first time in 25 years, and landed a record number of bilateral air agreements.
“We restored integrity to the federal grants process, increased funding for local roads, and legislated a national fuel efficiency standard.
“With the foundations set in the first term, it is time to harness the opportunity to build a better and stronger future, with infrastructure that connects people and businesses and makes our communities not just liveable, but desirable.
“We have a significant agenda for our second term, including: establishing a robust consumer aviation protection regime, preserving regional aviation and driving competition in the sector; driving productivity in construction and across our supply chains; getting on with Melbourne Airport Rail, fixing Queensland’s Bruce Highway, finishing Western Sydney International, and much more.
“I look forward to continuing to work with an impressive team of Ministers to progress this important work.”
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says:There is a vast difference between saying and doing something – Like most others, I await the outcome – One thing for sure, someone is going to loose big time.