Following Rex going into voluntary administration in July 2024, and ceasing operation of its Australian capital city routes, consumers have been hit with price spikes averaging 13.3 per cent on tickets along those routes due to less choice, according to the Australian Competition and Consumer Commission.
However, Rex won’t be returning to those city routes, with the government assistance to help the airline keep its regional fleet in the air and service Australian regions that rely on its connectivity.
The $80 million lifeline means Rex workers will be paid for the first time since July, and will keep the airline’s planes flying until after the 2025 federal election.
Company administrators EY are still seeking a buyer for Rex Airlines, having rebuffed two potential suitors already.
“Rex’s regional service is critical to communities and businesses across Australia, particularly for mining, construction, health, government and not-for-profit industries,” says Flight Centre Corporate COO Melissa Elf.
“The demand for regional travel has not slowed, and it remains a very important component of the Australian economy.
“The proof is in the numbers – in the July to September 2024 quarter, regional travel was up around five per cent compared to the previous year (July to September 2023).”
Elf says Rex has long been a reliable regional airline for Australians living outside the major cities.
“Regional communities are heavily reliant on carriers such as Rex, which are oftentimes their only way of a timely connection to our major cities.
“We’re seeing significant volumes of travel into Dubbo, Broken Hill, Roma, Griffith, Mt Isa and Coffs Harbour.
“With much of Australia’s economy buoyed by mining and critical minerals, agriculture and manufacturing, seeing travel growing across our regions is a promising sign for the broader economy.
“I anticipate we’ll continue seeing an uptick in businesses travelling regionally into next year and beyond as the promising growth of many regional communities will likely bring with it increased investment in infrastructure, technology, tourism, transport and housing that will prove rewarding for businesses.”
