Government opens $5m fund for regional airports owed by Rex

“Regional Australians know the Albanese Labor Government has their back, which is why we worked hard to support regional communities through the voluntary administration process,” Transport Minister Catherine King said.

“Rex plays an essential role in connecting regional Australian communities and this will ensure those services can continue. I encourage councils and airports affected to apply for this support program ensuring the maintenance of critical aviation links across our country.”

Speaking to reporters at Parliament House, the Transport Minister said the fund would cover most of the debts owed to regional airports – many owned by local councils – of between $45,000 and $650,000.

“We’re reliant on the voluntary administrators to tell us what the debts were in terms of local councils. And so, we’ve done that calculation on the best we could from the information from the administrators,” she said.

“But it is fair to say that every local government airport where Rex flies in that there are landing fees that weren’t paid and other fees that weren’t paid during that period of time of the administration.

“So, it is pretty much across the board of all of those local council operated airports. And the calculation of around $5 million will cover the majority of that. It will probably not cover all of it.”

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The Australian Airports Association (AAA) has welcomed the opening of applications, with CEO Simon Westaway saying it had been a “long and anxious wait” for regional airport operators since Rex went into administration in mid-2024.

“These funding applications are an important step for regional and remote airports that carried financial risk to help keep essential air services operating during a highly uncertain period,” he said.

“Many of these airports are council-owned and already operate at a loss, while managing ageing infrastructure, rising federally mandated security and regulatory requirements, workforce shortages and staffing pressures.

“Throughout Rex’s administration, airports continued to provide critical infrastructure and services, carrying unpaid charges to keep essential air links operating.”

According to Westaway, the announcement follows “strong advocacy by the AAA to ensure regional and remote airports affected by the Rex administration were not left behind”.

“Many of the challenges facing regional airports are now being considered through the Productivity Commission’s review of regional airfares, and the AAA looks forward to contributing to that process,” he said.

“I encourage eligible regional and remote airports owed money by Rex Airlines to apply through the Federal Government process as soon as possible.”

Rex was late last year purchased by US firm Air T, which has pledged to maintain services and bring more of its Saab 340B fleet back into operation.