The Australian Federal Government has announced it will guarantee regional flight bookings for Rex customers throughout the voluntary administration process. Federal Transport Minister Catherine King said a regional flight guarantee would provide certainty for Rex's regional customers.
Voluntary Administrator of the Rex Group, that went into administration earlier this month with estimated debts of $500m, has welcomed the move by the Government.
Sam Freeman, in his capacity as Voluntary Administrator of the Rex Group:
“Rex welcomes the announcement today of the Federal Government’s Regional Flight Booking Guarantee, which is a positive step toward securing the future for Rex, Rex’s 1,200-plus employees and all Australians who rely on these services to connect their communities."
“We have experienced firsthand the importance of Rex’s regional services to the communities the airline serves and would like to express our gratitude to the Federal Government for stepping in with this support."
“The Federal Government’s flight booking guarantee will give Australians confidence to continue booking to or from a regional destination on Rex, ensuring that in the unlikely event that their service is not delivered – they will be entitled to receive a full refund."
Rex was placed into voluntary administration on 30th July after days of speculation about the carrier's future when it was forced into a trading halt on the Australian Securities Exchange (ASX).
The carrier had immediately cancelled its services between capital cities, however flights from to and from regional centres, including Mount Gambier, have continued.
Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King last week announced that travellers can continue to book regional flights on Rex during this process with certainty they will either fly or get their money back.
Rex also released a customer note in its website assuring through Federal Government’s Regional Flight Booking Guarantee, where the Federal Government has agreed to provide a guarantee over any chargebacks and refunds.
In the event that a Regional Express Holdings Limited (Administrators Appointed) (ACN 099 547 270) flight is subsequently cancelled and not rescheduled, and no alternative service has been delivered to the customer, and the Rex Companies are unable to provide a refund, the Federal Government has agreed to provide a guarantee over any chargebacks and refunds.
Administrators said the federal government's flight booking guarantee will give Australians confidence to continue booking to or from a regional destination on Rex.
As per, Minister King, Rex operates one of Australia’s largest regional air networks and provides essential connectivity to move people and critical freight on 41 routes to regional and remote communities, including 21 routes that are only serviced by Rex.
“Rex’s continuation is in the best interests of Australia – and the government is working closely with the administrators to ensure a strong regional aviation presence now and into the future.
“The guarantee is for all regional flight bookings with Rex made after it entered voluntary administration at 9.31pm on 30 July 2024.
“This will give customers confidence to continue booking regional flights with Rex – flights that allow them stay connected to family, friends, healthcare and other services – while also helping to maintain regional aviation in Australia.
“My department will continue to work with the administrator on their plans for the continuation of services to regional communities.
“We also expect the administrator to honour and prioritise the entitlements of Rex employees.
“This guarantee is a message to regional Australia that we know how important reliable air services are to you and that we are not going to allow your communities to be left behind.”
On the Federal Flight Booking Guarantee, Sam Freeman added further,
"Rex is here for regional Australia, and we encourage all Australians to see Minister King’s announcement today as a confidence boost and continue booking during the voluntary administration.”
On August 9, administrators held their first creditors meeting, revealing that the airline owes money to 4,800 creditors, including former staff, suppliers and other agencies.
It could take months before creditors were paid what they were owed.
"We're currently undertaking a process to find an investor committed to a sustainable commercial regional network," Mr Freeman said.
As per Mr Freeman, administrators are positive that a buyer for the Regional carrier would be found.
"There has been a really significant amount of buyers reaching out since day one of the administration," he said on Monday.
