Government awards $4.8m to regional airports hit by Rex collapse

Dubbo Airport in regional NSW received the highest amount at $598,672, followed by Albany, Esperance and Carnarvon in WA, and Port Lincoln in South Australia; Armidale in NSW received the lowest payout at just $406.

Rex was purchased last year for $172.5 million by US firm Air T, which has pledged to maintain services and bring more of its Saab 340B fleet back into operation.

“Following the application process, 95 per cent of claimants were assessed as eligible and received payments covering 100 per cent of their eligible debt,” the government said in a press release.

“Last year, the Albanese Government successfully supported the sale of Rex Airlines to Air T, ensuring that people living in regional Australia could continue to access the flights they need to stay connected.

“This program is the latest in the Albanese Government’s support for regional and remote aviation, including commercial loans, debt restructuring and assisting hundreds of airports and airstrips through the Remote Airstrip Upgrade Program and the Regional Airports Program.”

According to Transport Minister Catherine King, the Albanese government plans to “continue to work closely with regional and remote communities to strengthen aviation connectivity”.

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“We committed to and delivered the successful sale of Rex Airlines to keep regional communities connected to the services they need,” she said.

“This financial support is yet another demonstration of our unwavering support for regional and remote aviation.

“We support regional aviation through word and deed, because we understand the essential nature of aviation to communities all over Australia.”

The funding has been welcomed by the Australian Airports Association (AAA), with chief executive Simon Westaway calling it “an important step to provide certainty in what’s been a volatile period for regional aviation”.

“Many regional and remote airports are council-owned and operate at a loss, so this funding will be a welcome relief to help manage this critical infrastructure,” he said.

“The AAA has worked incredibly hard to make sure these airports weren’t left unpaid following Rex’s voluntary administration, so we’re very pleased to see this outcome.”

As part of the buyout deal, the government offered financial support for Rex’s operations in exchange for Air T’s guarantees to return more aircraft to service and maintain regional passenger flights; the government also retains security over the Rex fleet to prevent its sale.

In February, the minister said Air T had “given significant undertakings to the government around regional connectivity”.

“They are absolutely determined in our discussions that we had with them, to … get back to classic Rex and the business of actually servicing regional Australia,” the minister said.

“We hope and we think this is a business that can make money. We think it is a business that can grow.

“We hope, in welcoming this company into Australia, into the passenger and regional passenger market, that we will see growth in regional aviation over time, but they’ve got work to do to really consolidate and make sure that the business is making money and is on a strong footing.”

A report in March found more than half of regional airports in Australia are losing money, with the median loss of around $192,000 for the 2025 financial year.