Rex Airlines has entered voluntary administration as of July 30, 2024, amid severe financial struggles. EY (Ernst & Young) has been appointed as administrators. This move suspends all Boeing 737 flights between major cities, including the Hobart-Melbourne route. However, regional services operated by the Saab 340 fleet will continue unaffected, ensuring that essential regional routes remain operational. The Transport Workers Union anticipates up to 850 job losses due to the administration.
Passengers affected by the cancellations are being redirected to Virgin Australia for rebooking at no additional cost, with a deadline for rebookings set for August 14. This situation has prompted concern from both state and federal governments, which have expressed their willingness to support the continuation of regional services. Rex Airlines, Australia’s largest regional air carrier outside the Qantas Group, has been a significant player in connecting various states across the country since its formation in 2002.
The administration announcement follows a series of financial challenges and a trading halt earlier in the month, highlighting the turbulent times for regional air transport in Australia. This comes on the heels of budget airline Bonza also entering voluntary administration earlier this year.
