Originally Posted by
LostProperty
The $62 million in grants effectively completely plugged Rex's revenue shortfall. Had Rex not elected to take a $62 million write down (asset impairment "in anticipation of difficult trading conditions in the next two years") they would have booked a $35 million pre-tax profit, up 40 per cent on the previous year.
From the balance sheet and cash flows it looks like Rex might have used $10 million of their own money to support operations but there's no sign of any increased borrowings to sustain themselves. The COVID-19 Regional Airlines Funding Assistance program was meant to be "a ‘last resort’ option when a range of other strategies to manage an airline’s position have been undertaken." (that's a quote from the published guidelines). So, how do you get $54 million in last resort funding when you haven't pursued first and second resorts?