The federal government has announced plans to acquire Rex Airlines if the struggling company cannot find a buyer, marking the first instance of a federal airline ownership since Qantas was privatised in the 1990s. Prime Minister Anthony Albanese emphasised the importance of Rex for regional and rural Australians, asserting their right to essential aviation services. He assured that the government is collaborating with Rex’s administrators to secure regional flights beyond June 2025, while also exploring potential Commonwealth support.
The government will not participate as a bidder in the current sale process but aims to assist shortlisted bidders in achieving a successful market-led outcome. Meanwhile, Rex has approximately five months to stabilise its operations, following a court-approved extension of its voluntary administration until June 30.
Although the airline has been facing difficulties, it successfully sold its ambulance service, Pel-Air, for $47 million to logistics firm Toll, with additional asset sales underway. Former employees have begun accessing the Fair Entitlements Guarantee, with 306 claims lodged, resulting in over $7.1 million paid to nearly all applicants to date.