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.
Speaking to ABC News Breakfast on Tuesday, Transport Minister Catherine King said she is ready to “see whether there’s any assistance or anything the Government needs to do” to help Rex, but did not go into detail.