Rex could become a state-owned airline
The Australian government is seriously mulling making bankrupt regional carrier Rex a state owned airline.
The business has been kept afloat by government backed guarantees and administrators have been working for six months to turn the business around.
However, its long term future requires a buyer, and there has been little interest in taking it over.
The government is now seriously mulling acquiring it as a state-owned airline until a buyer can be found.
The airline operates critical regional routes to and from remote communities in the interior which the government deems as essential.
The federal government last month said it would acquire $50m of debt from Rex’s largest creditor, but may have to spend more to secure its future.
There are bidders in the picture but the government appears less optimistic a serious buyer that can maintain its essential air services can be found.
“In the event there is no sale, the Albanese government will undertake necessary work, in consultation with relevant state governments, on contingency options, including preparations necessary for potential commonwealth acquisition,” it said.
The PM Anthony Albanese said: “Regional Australians deserve access to quality and crucial regional aviation services.”
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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