Government may step in to save Rex Airlines

The federal government has promised to step in and take over Rex Airlines if no buyer comes forward to save the struggling regional carrier.

A Lifeline for Regional Aussies

Rex Airlines has been fighting to stay afloat ever since it went into voluntary administration on June 30 last year, with administrators Ernst & Young (EY) working to secure its future. But now, the government says if all else fails, it’s ready to step in—marking the first time a federal takeover of an airline has happened since Qantas was privatized in the 1990s.

Prime Minister Anthony Albanese says Rex is too important to lose:

“Regional Australians deserve access to quality and crucial regional aviation services.”

The government is working closely with Rex’s administrators to make sure flights continue beyond June 2025, either through a successful sale or government support.

What Happens Next?

• The government is not actively bidding but will work with potential buyers to help complete a sale.

• EY has five months left to find a commercial solution, with the voluntary administration extended until June 30.

• The government has already pledged up to $80 million to keep Rex’s regional routes running during the process.

What Has Rex Sold So Far?

To try and stay afloat, Rex has sold its ambulance business, Pel-Air, to Toll for $47 million, and other asset sales are ongoing.

Meanwhile, former employees have been granted early access to their entitlements, with 306 claims received so far—and $7.1 million already paid out.

Will Rex Be Saved?

It’s still uncertain whether a private buyer will step in, but the government is making it clear: Rex isn’t going anywhere without a fight. If no one else steps up, the federal government will take the reins to keep regional communities connected.