There is uncertainty about the future of Rex – Australia’s third-largest airline – after it entered voluntary administration and grounded all of its flights between capital cities.
The Albanese government held crisis talks with Rex on Tuesday and appeared willing to step in to save parts of the airline’s operations.
While Rex jet services between capital cities such as Sydney, Melbourne and Brisbane are grounded and ticket sales halted, its regional services are unaffected, administrators from EY – previously known as Ernst & Young – said in a statement on Tuesday night.
The airline entered a trading halt on Monday. The news follows the recent collapse of budget carrier Bonza in a market dominated by the Qantas and Virgin duopoly.
Rex is the only air link provider for many regional towns and its fares on capital city routes have been competitive with the major players.
So, how serious is the situation at Rex?
What has happened?
Late on Tuesday evening, administrators from EY announced they had been appointed to determine the future of Rex.
All flights that Rex operates using its fleet of Boeing 737 jets between capital cities have been grounded.
Virgin Australia has stepped in to help affected Rex passengers, offering to…