According to the TWU, administrators have said 360 Rex domestic jobs will be made redundant and 250 regional jobs are also facing the axe.
Speaking to ABC Radio National on Wednesday morning, the minister said the airline is “incredibly important” for regional travel but stressed that the government can’t step in and save Rex “at any cost”.
The news caps a sensational turnaround after Rex took the leases of old Virgin aircraft following its own collapse during the COVID-19 pandemic in 2020.
Regional Saab 340 flights are currently unaffected and will continue to operate, while subsidiaries Pel-Air Air Ambulance Services and Australian Airline Pilot Academy also remain outside of administration and under the control of their respective directors.
In a press release, Sharp, which operates 23 Metroliner turboprop aircraft servicing five states, said the government should offer support to Rex, but “only on routes that Rex is the sole operator”.
Australian Aviation has verified that domestic bookings past 30 July appear to be unavailable, while tickets for regional flights served by the airline’s Saab 340 fleet are still on sale. The Australian Financial Review has reported Ernst & Young (EY) is likely to be appointed as an administrator.