The Federal Government is supporting the continued operation of Rex Airlines regional services, with the announcement it will acquire debt from the company’s largest creditor.
The government will acquire $50 million of debt from PAGAC Regulus Holdings Limited (PAG), an important step to prevent an adverse outcome for regional communities, such as liquidation, and ensure the continued connectivity of Australia’s regional and remote communities.
By acquiring the debt, the government will become the principal secured creditor and will seek to become a voting member of the Committee of Inspection.
Whilst the accelerated initial sale process undertaken by the Administrators in mid-2024 did not find a suitable buyer for the airlines’ regional operations, the government continues to work closely with the Administrators through the extended convening period.
This reflects the government’s ongoing commitment to maintaining access to aviation services for regional and remote communities, and recognises the critical role of the Rex network to local economies.
This announcement builds on previous action, including the Federal Government providing a commercial loan of up to $80 million to the Administrators to keep Rex’s vital regional routes operating, granting early access to former employees of Rex Airlines Ltd (the Boeing-737 business) to the Fair Entitlements Guarantee, and providing a guarantee in relation to regional ticket sales during the voluntary administration.
To date, the Employment and Workplace Relations Department has received 306 claims and processed 302 claims from former Rex (RAL) employees, with over $7.1 million already provided to Rex staff through FEG.
These actions preserve important economic, medical and freight services, supporting regional liveability and regional economies.
