Jake Nelson

Commencing in March 2026, flights from the Sunshine Coast to Denpasar will operate three times per week on Jetstar’s A321neo LR fleet, adding more than 70,000 seats per year, and will connect onwards to Singapore.

In a statement, the peak body for regional aviation welcomed the government’s “commitment to regional Australia”, but called on it to “support all Australian regional airline operators, not just Rex”. It comes as Transport Minister Catherine King announced financial aid for Air T’s purchase of Rex.

The Regional Airfare Zone Cap scheme, which has flown more than 500,000 discounted airfares, was earlier this year extended into June 2026. Its potential expiry has sparked anxiety over possible huge jumps in fares, as reported by the ABC, but WA Transport Minister Rita Saffioti has said it will be renewed.

Under the arrangements, Rex’s debt will be restructured, with $90 million owed to the government set to be carried forward in a profit-sharing arrangement, while another $60 million loan will be extended to help with engine care and maintenance in bringing more Saab 340Bs back into service.

In their report released on Monday night, the voluntary administrators from EY Australia recommended the approval of the Air T deal despite the lack of return to ordinary unsecured creditors, saying it would nonetheless achieve a better outcome than Rex Group being wound up.

Paul Lindwall, who presided over the Productivity Commission’s 2019 Economic Regulation of Airports inquiry, has cast doubt on SAF’s environmental credentials, calling it in an op-ed in the Australian Financial Review “an expensive, inefficient distraction from viable alternatives”.