Image: Regional Express Airlines
The immediate future of regional flights by Rex Airlines has been secured, with the Federal Government stepping in to support the company’s administration process.
The airline, which operates daily flights in and out of Burnie, Devonport and King Island, Rex went into voluntary administration in July years after it was reportedly losing a million dollars a week.
The airline cut all its capital city jet services, including Hobart to Melbourne and axed more than 600 jobs.
The federal government is taking on $50 million of the company’s debt, becoming the main secured creditor during the process, which Federal Transport Minister Catherine King says will preserve important medical and freight services for our regional economies.
The move offers the government greater power over the airline’s future – as the principal secured creditor.
The Transport Workers Union has welcomed the Government stepping in, but warns more needs to be done to ensure the airline’s long-term viability.
