ALL regional and rural residents of Australia must be feeling the sadness of what is happening to REX airline, now under administration by Ernst & Young.

In order to prevent its complete collapse, the Federal Government has acquired $50 million debt from its top secured creditors, which gives the Government control over the company’s voluntary administration process.

Whilst the cynics have pointed out that this is a knee-jerk response from a government that is facing an election rumored to be held on 12 April, the reality is that regional residents need the connectivity of fast and efficient transport by air to state capital cities for business and personal reasons.

The company’s deputy chairman is John Sharp, a former member of Federal Parliament and former Minister in Liberal and National Party governments.

The airline’s debt is said to be in the area of $500 million.

The easiest way to solve the issue is of course to sell the business to another private enterprise company.

Even better if the buyer happens to be an international airline that can source passengers for its operation from regional residents who book REX flights.

Sources close to the Rex operation say that there is simply no buyer out there that is interested in purchasing the operation, especially when its planes are now over 30 years old – but said to be well maintained with a good safety record over very many years of operation.

An airline business is a tricky operation at the best of times.

That becomes even harder with smaller planes carrying half loads of passengers to arguably low demand destinations.

REX was a merger between even smaller regional airlines – Hazeltons from Orange and Kendell from Wagga Wagga.

It has been well liked by its clientele, with small turbo prop planes flying from regional areas to state capital cities, supported by their mail, courier and aircraft repair operations which were so necessary to support that way of life in the regions.

After we get past the next Federal Election, the way forward or otherwise for REX will no doubt become much clearer.

By John BLACKBOURN