REX AIRLINES Trading Halt
Joined: Oct 2018
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From: Australia
This announcement has just come through:
The Albanese Government is delivering on its commitment to support a successful sale of Rex.
Today, the Government is announcing the details of the financing that it will provide to support the proposal put forward by Air T, Inc. (Air T) to the Administrators of Rex in connection with their bid to acquire Rex.
The Government will restructure Rex’s existing debt to the Australian Government. Approximately $90 million of existing debt will be carried forward and a new commercial loan of $60 million will be provided to Rex.
This will supplement the $50 million being contributed by Air T towards the recapitalisation of the business.
In exchange for this financing and to ensure value for taxpayer money, Air T has agreed to a range of commitments aimed at preserving essential regional aviation connectivity and improving governance arrangements.
This will include returning more aircraft to service and increasing the frequency of profitable flights across the Rex network.
To safeguard this public investment, the Government will retain its security over all Rex’s aircraft and simulator. This will ensure Rex’s Saab fleet cannot be sold without the Government’s permission and will continue to service communities across regional and remote Australia.
Separately, the Government is also announcing today that it will establish a new program capped at $5 million for local government and regional and remote airports that supported Rex through the voluntary administration process.
This new program will mitigate financial barriers to these organisations continuing to provide essential services to their communities. Eligibility will be based on the amount owed to the organisation by the Rex regional business when it entered voluntary administration.
This program is a separate Australian Government initiative and is not part of the negotiations with Air T for its acquisition of Rex.
This builds on the vision outlined in the Aviation White Paper for the benefits of aviation to be shared across regional and remote Australia, and the extension of Regional Airports Program in the 2024-25 Budget with an additional $40 million for two further funding rounds.
For more information visit: Support for Air T Factsheet
From: https://minister.infrastructure.gov....id-acquire-rex
Australian Government supporting Air T’s bid to acquire Rex
The Albanese Government is delivering on its commitment to support a successful sale of Rex.Today, the Government is announcing the details of the financing that it will provide to support the proposal put forward by Air T, Inc. (Air T) to the Administrators of Rex in connection with their bid to acquire Rex.
The Government will restructure Rex’s existing debt to the Australian Government. Approximately $90 million of existing debt will be carried forward and a new commercial loan of $60 million will be provided to Rex.
This will supplement the $50 million being contributed by Air T towards the recapitalisation of the business.
In exchange for this financing and to ensure value for taxpayer money, Air T has agreed to a range of commitments aimed at preserving essential regional aviation connectivity and improving governance arrangements.
This will include returning more aircraft to service and increasing the frequency of profitable flights across the Rex network.
To safeguard this public investment, the Government will retain its security over all Rex’s aircraft and simulator. This will ensure Rex’s Saab fleet cannot be sold without the Government’s permission and will continue to service communities across regional and remote Australia.
Separately, the Government is also announcing today that it will establish a new program capped at $5 million for local government and regional and remote airports that supported Rex through the voluntary administration process.
This new program will mitigate financial barriers to these organisations continuing to provide essential services to their communities. Eligibility will be based on the amount owed to the organisation by the Rex regional business when it entered voluntary administration.
This program is a separate Australian Government initiative and is not part of the negotiations with Air T for its acquisition of Rex.
This builds on the vision outlined in the Aviation White Paper for the benefits of aviation to be shared across regional and remote Australia, and the extension of Regional Airports Program in the 2024-25 Budget with an additional $40 million for two further funding rounds.
For more information visit: Support for Air T Factsheet
From: https://minister.infrastructure.gov....id-acquire-rex
Joined: Oct 2007
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From: Aus
Its clear even the Government think it's dodgy, as they are paying another $60 mil directly to Rex, however how stupid do they think people are in regard to the airport pay outs. They are trying to claim that $5 million paid to each airport owed money is not related to the amount of bailout the government is providing, that could add up to well over $100 million in itself. So now we are talking $300+ million of tax payer funds used to bail out a company worth at most $50 million. This is owed money, not extra capital to help the airports. Pretty sure this is going to bite somebody very hard in the future, I hope they have career insurance.
There's still way too much that does not make sense. Going forward the company can not be profitable, without cash to buy new fleet, and a significant increase in pay and conditions to attract and retain crew, which will further dent any profit aspirations, there is no hope the airline will continue for more than a few years at best. Maybe there is some hidden plan for new planes and a vault full of pilots that have been waiting eagerly for the opportunity to fly for Rex.
PS sounds like Alliance might be in trouble now, hope the government has some more millions ready.
There's still way too much that does not make sense. Going forward the company can not be profitable, without cash to buy new fleet, and a significant increase in pay and conditions to attract and retain crew, which will further dent any profit aspirations, there is no hope the airline will continue for more than a few years at best. Maybe there is some hidden plan for new planes and a vault full of pilots that have been waiting eagerly for the opportunity to fly for Rex.
PS sounds like Alliance might be in trouble now, hope the government has some more millions ready.
Last edited by 43Inches; 4th November 2025 at 05:31.
Joined: Dec 2001
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From: Brisvegas
So now we are talking $300+ million of tax payer funds used to bail out a company worth at most $50 million.
Joined: Nov 2010
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From: Australia
If your criticism is about the extent to which the current ALP federal government is bankrolling the survival of Rex, then that is another matter. But shouldn't you then likewise be critical of the former coalition government for bankrolling Rex without sufficient conditions over how federal government financial support was to be used?
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From: Brisvegas
helispotter you are being too literal in your attempt to defend Labor MPs. The government is being very generous with taxpayer money for a dubious result. This airline should have gone the way of Ansett, Compass, Skyairworld, Air Australia, Jetgo, Bonza, Brindabella, Tiger, Ozjet et al. A federal government should not being supporting it but should support the other operators to operate the routes.
Joined: Nov 2010
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From: Australia
helispotter you are being too literal in your attempt to defend Labor MPs. The government is being very generous with taxpayer money for a dubious result. This airline should have gone the way of Ansett, Compass, Skyairworld, Air Australia, Jetgo, Bonza, Brindabella, Tiger, Ozjet et al. A federal government should not being supporting it but should support the other operators to operate the routes.
Joined: Nov 2010
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From: Australia
My guess is Bonza didn't have the necessary political connections on either side, didn't have routes that couldn't otherwise be served by the other carriers, and wasn't a long established business. But I am no politician and I don't really know how they tick (on either side).
Joined: Sep 2020
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From: mildura
Bonza was a 'luxury' - a leisure airline.
Rex is - somewhat incorrectly - regarded as an 'essential service' ... I totally beg to differ ... they're a business, that flies regional routes ... some being regulated / subsidised routes for two State Governments.
QF is the same.
Realistically, given the volume of routes that Rex fly competitively against other airlines, they should have done a deal with VA - that would have strengthened VAs credentials, built some scale for VA, and gone some way to re-establishing a nation-wide competitor to QF.
However - all of that - in hinesight, and given what had occured when AN collapsed - the then Federal Government should have gone out on a limb and done whatever they could to keep AN afloat (Tesna, VA merger, whatever) - we then wouldn't even be in this Rex conundrum.
Rex is - somewhat incorrectly - regarded as an 'essential service' ... I totally beg to differ ... they're a business, that flies regional routes ... some being regulated / subsidised routes for two State Governments.
QF is the same.
Realistically, given the volume of routes that Rex fly competitively against other airlines, they should have done a deal with VA - that would have strengthened VAs credentials, built some scale for VA, and gone some way to re-establishing a nation-wide competitor to QF.
However - all of that - in hinesight, and given what had occured when AN collapsed - the then Federal Government should have gone out on a limb and done whatever they could to keep AN afloat (Tesna, VA merger, whatever) - we then wouldn't even be in this Rex conundrum.
Joined: Sep 2003
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From: in a house
My Question now is, with none of Rex’s ordinary unsecured creditors receiving anything, these include airports, refuelers, ground handlers etc why do they now, not allow rex to use the airports, don’t sell them fuel etc?
The government can pay PAG out, a company who knew the risk when signing the dotted line, but leave all other investors out in the cold. This would then leave the government with egg on its face.
The government can pay PAG out, a company who knew the risk when signing the dotted line, but leave all other investors out in the cold. This would then leave the government with egg on its face.
Last edited by assasin; 4th November 2025 at 12:55.
Joined: Jan 2006
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From: Sydney Australia
I'm a little confused, how exactly is Air T going to make money out of this deal? REX's profitability has been systematically destroyed from the minute the clowns running the show decided that the future of the company rested with a domestic Jet operation. In doing so they all but abandoned the regional side of the business. The core strength of the regional business, the low debt/equity ratio, the lack of competition on their golden routes, and a strong relationship with the regional centres they service, have been lost forever.
With over $100M in Taxpayer donations, how much profit has the airline made in the last 18 months Sam. I can't seem to find that in the Fact sheet!
There's been much speculation that Air T are only interested in REX for the aircraft and converting them into spare parts. It appears that this may be more than speculation. The Government have placed a caveat on the aircraft to stop them from doing just that. Coincidence, I think not. If the government doesn't trust Air T to make a go of it without parting out the fleet, then I ask the question again. How is Air T going to make money out of this?
For those of you who remember, Lindsay Fox and Soloman Lew had all but signed the deal to save Ansett when the Government instructed the Administrators to remove the airport terminals from the sale and sell them to private operators. The rest as they say is history.
With over $100M in Taxpayer donations, how much profit has the airline made in the last 18 months Sam. I can't seem to find that in the Fact sheet!
There's been much speculation that Air T are only interested in REX for the aircraft and converting them into spare parts. It appears that this may be more than speculation. The Government have placed a caveat on the aircraft to stop them from doing just that. Coincidence, I think not. If the government doesn't trust Air T to make a go of it without parting out the fleet, then I ask the question again. How is Air T going to make money out of this?
For those of you who remember, Lindsay Fox and Soloman Lew had all but signed the deal to save Ansett when the Government instructed the Administrators to remove the airport terminals from the sale and sell them to private operators. The rest as they say is history.
Joined: Nov 2001
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From: Australia/India
There were pats on the back, all round, 5 minutes ago in the House of Reps question time, for the government having saved Rex. Clearly the government and the opposition believe that Air T is going to run the airline as an airline rather than part the aircraft out.
Joined: Jul 2003
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From: Somewhere
Fast forward to 1:10: House of Reps Question Time 5 Nov 25
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Albanese is obviously impressed with the outcome because it does two things; it shows that the Labor party is "looking after country people" by using tax payers money to subsidise country airline operations and hopefully win a few country votes. Also in his mind it proves that government interference in the market shows that there are some things that the government does better than business which is a hobby horse of his.
The fact that they have burnt hundreds of millions of tax payer's dollars subsidising a foreign commercial operation who took unreasonable amount of risk with taxpayer's money during Covid and failed seems lost on him.
They are now stacking the deck for the creditors meeting which hopefully gets waived through with even more tax payers dollars. The government is going to give Air T favorable terms with tax payers money and subsidise local councils also with tax payers money. That now sets it up for other creditors to get their begging tins out with the threat of a no vote
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From: Somewhere
Joined: Jul 2003
Posts: 3,381
Likes: 532
From: Somewhere
And so it begins. Every airline in Australia will have its cap out soon
The Regional Aviation Association of Australia (RAAA) has called on the federal government to support a wider range of regional airlines in the wake of Rex’s buyout.
In a statement, the peak body for regional aviation welcomed the government’s “commitment to regional Australia”, but called on it to “support all Australian regional airline operators, not just Rex”. It comes as Transport Minister Catherine King announced financial aid for Air T’s purchase of Rex.
“The announcement means that the Government has provided over $220 million in support of Rex. We are asking the Government to also assist all hardworking Australian regional airlines. Assistance through government backed loans, government guarantees, or tax incentives would potentially help,” Rob Walker, chief executive of the RAAA, said.
“Without action on the key issues now the future looks increasingly bleak for regional and remote aviation services. Regional communities across Australia risk losing critical aviation services without urgent political and policy action.
“RAAA member airlines operate regionally with similar sized aircraft and the same operational costs as Rex. We are asking Government to help secure the future viability and sustainability of aviation by supporting all regional airlines and the communities they serve.
“The people who run and work in regional aviation businesses love what they do and are doing their utmost to support their communities – now they need the right support from government.”
The federal government is extending another $60 million in financing to Rex on top of the money it is already owed, with an existing $90 million to be repaid over time in a profit-sharing arrangement, under the proviso that Air T continues operating its regional services.
There will also be a relief package of $5 million to airports owed money by Rex, which, as unsecured creditors, are set to receive nothing from the Air T purchase.
“Our members are committed to providing world-class aviation services to the regional communities we serve and remind all stakeholders that there is more than one regional airline operating in Australia,” Walker said.
“We also welcome the Government’s commitment to support the regional airports who have been impacted by Rex’s voluntary administration. The $5 million support program will provide vital relief for those airports who as unsecured creditors have continued to support Rex.”
Rex’s creditors are set to vote on whether to approve the buyout at a meeting on 11 November, which the government, as its largest creditor, said it would support.
In a statement, the peak body for regional aviation welcomed the government’s “commitment to regional Australia”, but called on it to “support all Australian regional airline operators, not just Rex”. It comes as Transport Minister Catherine King announced financial aid for Air T’s purchase of Rex.
“The announcement means that the Government has provided over $220 million in support of Rex. We are asking the Government to also assist all hardworking Australian regional airlines. Assistance through government backed loans, government guarantees, or tax incentives would potentially help,” Rob Walker, chief executive of the RAAA, said.
“Without action on the key issues now the future looks increasingly bleak for regional and remote aviation services. Regional communities across Australia risk losing critical aviation services without urgent political and policy action.
“RAAA member airlines operate regionally with similar sized aircraft and the same operational costs as Rex. We are asking Government to help secure the future viability and sustainability of aviation by supporting all regional airlines and the communities they serve.
“The people who run and work in regional aviation businesses love what they do and are doing their utmost to support their communities – now they need the right support from government.”
The federal government is extending another $60 million in financing to Rex on top of the money it is already owed, with an existing $90 million to be repaid over time in a profit-sharing arrangement, under the proviso that Air T continues operating its regional services.
There will also be a relief package of $5 million to airports owed money by Rex, which, as unsecured creditors, are set to receive nothing from the Air T purchase.
“Our members are committed to providing world-class aviation services to the regional communities we serve and remind all stakeholders that there is more than one regional airline operating in Australia,” Walker said.
“We also welcome the Government’s commitment to support the regional airports who have been impacted by Rex’s voluntary administration. The $5 million support program will provide vital relief for those airports who as unsecured creditors have continued to support Rex.”
Rex’s creditors are set to vote on whether to approve the buyout at a meeting on 11 November, which the government, as its largest creditor, said it would support.
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From: Brisbane
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From: Somewhere
Sure, good move by the government but $172 Million seems like alot for not much