Rex’s bailout extended; early access to worker entitlements approved Camden Haven Port Stephens by News Of The Area - Modern Media - November 17, 2024 Rex operates several flights a day out of Port Macquarie Airport. Photo: Rex Airlines. REX Airlines will keep flying from Port Macquarie Airport to Sydney for at least another seven months, after the Albanese Government extended an $80m lifeline to the regional airline. It has also granted early access to entitlements for retrenched employees. Advertise with News of The Area today. It’s worth it for your business. Message us. Phone us – (02) 4981 8882. Email us – media@newsofthearea.com.au Rex’s parent company, Regional Express Holdings, entered voluntary administration on July 30, 2024. In a message to customers on Tuesday morning, administrator Sam Freeman of Ernst & Young (EY) said the extension of the Federal Government Regional Flight Booking Guarantee “is great news for Rex.” “It provides resources for investment needed to improve the business and the operational performance of the regional network including increasing the size of the active regional Rex fleet,” he said. “This investment is designed to increase reliability and capacity on our regional routes. “We are also seeking to extend the period of voluntary administration to 30 June, 2025. “An extension coupled with a business improvement plan, enabled by the Australian Government’s $80 million financing facility, will put Rex in the best possible position for a sustainable future.” In announcing the extended bailout, Transport Minister Catherine King and Workplace Minister Murray Watt said the aim is “to keep Rex’s regional routes running”. “Rex’s administration process is progressing with the recent sale of Pel-Air Aviation Pty Limited to Helicorp Pty Ltd, part of Toll Aviation,” Ms King said. “Proceeds from the sale are being used to repay secured creditors.” “The Government has agreed to grant early access to former employees of Rex Airlines, which operated the intercity jet services, to the Fair Entitlements Guarantee (FEG) while RAL is in voluntary administration. “This will ensure that extending the voluntary administration period does not delay the ability of these employees to access their entitlements. “In addition, Rex’s administrators and main secured creditor PAG have advised they will pay the entitlements of former employees of the regional business who have been made redundant during the voluntary administration period. “The Government will also continue to guarantee ticket sales made throughout the voluntary administration to 30 June, 2025, should the Federal Court agree to the extension application.” Ms King said the guarantee had been effective so far and had yet to be used due to bookings “holding up well”. By Sue STEPHENSON
