Originally Posted by
MickG0105
Rex Airlines Pty Limited is a wholly owned subsidiary of Regional Express Pty Limited - there's no regulatory or financial separation there.
In fact there is a separation. Different legal entities, different ABN's. There is no obligation of a Principal to guarantee a subsidiary's debt, unless a Deed of Guarantee has been executed by the Principal.
I have not researched the corporate make-up of the organisation........but if the B373's were leased by the parent say and then dry leased to the subsidiary, with operational costs (wages, fuel, airway charges and airport fees borne by the subsidiary in its own name, then that is a very neat way to cocoon the operation from the Principal