The Federal Government has stepped in to guarantee flight bookings made with embattled regional airline REX while it is in administration.
It’s hoped that will encourage people to keep flying on Rex’s regional routes while the airline’s future is sorted.
The airline went into voluntary administration last months with debts of more than $500 million, grounding its capital city jet services and making 600 staff redundant.
Rex’s regional network is continuing to operate, including flights between Melbourne and Devonport, Burnie and King Island.
Federal Transport Minister Catherine King has told Parliament it’s not a government bail-out, but just a guarantee on flights.
She says it’s crucial services continue while the airline is in administration so it has a chance to trade out of its difficulties.
