The federal court approved an extension of Regional Express (Rex) Airline’s voluntary administration by Ernst & Young (EY) Australia on Thursday 21 November.
Rex Airlines entered into voluntary administration on 31 July and ceased service between major cities, costing 600 people their jobs and putting regional air service at risk.
The airline found itself in financial difficulty after purchasing a fleet of nine Boeing 737-800s and 57 Saab 340s to compete with Qantas and Virgin Australia, however, that strategy was not as profitable as expected.
Services to regional cities has remained in place to date, but there are growing fears around the implications for travelers if the airline bows out permanently.
EY requested the extension to set up a business plan to put Rex Airlines up for sale, including increasing the size of the operational fleet.
“On behalf of the EY and Rex teams, our customers, and the communities Rex serves, I’d like to thank Minister King for her strong support for regional Australia,” EY Partner Samuel Freeman said.
“Through this plan, we’re looking to increase reliability and capacity on the regional routes.
“An extension will not disrupt the continued operation of the regional network which is…