Embattled regional airline Rex has been thrown an operations lifeline after the federal authorities earmarked as much as $80 million to maintain its regional routes operating.
The background: Rex after its fleet of Boeing 737s working between main metropolitan centres was grounded.
Its administration was handed to directors EY Australia, whereas Rex’s regional providers continued as a purchaser or monetary lifeline was looked for the airline.
Transport Minister Catherine King and Office Minister Murray Watt introduced on Tuesday the federal government would offer as much as $80 million and grant early entry to entitlements for Rex’s former staff.
The cash will help the continuation of vital providers for regional communities, they stated in a joint assertion.
What else to know: Rex’s directors plan to use to the Federal Courtroom to increase the voluntary administration to 30 June 2025.
If the applying is granted the federal government will proceed to ensure ticket gross sales made all through the administration interval to that date.
“The assure has been efficient to this point, and has but for use with flight bookings holding up properly,” the ministers stated.
Greater than 600 staff have been made redundant because it was revealed Rex was struggling beneath the burden of a $500 million debt.
In August, the federal authorities on regional flights, however resisted requires a bailout.
