REX Airlines
THE COLLAPSE OF REX AIRLINES: A CRITICAL ISSUE FOR REGIONAL ECONOMIES
The recent collapse of Regional Express (REX) Airlines has had a profound impact on regional economies across Australia. This event has exacerbated existing challenges faced by communities outside metropolitan areas, including diminished connectivity, increased airfare prices, and reduced access to essential services.
RDA Murray, in collaboration with the RDA network, is actively advocating for solutions to mitigate these impacts and ensure fair access to air services for regional Australians.
HAVE YOUR SAY
RDA Murray is calling on regional stakeholders to provide evidence or case studies of the likely impact of the collapse of REX Airlines to regional business and industry.
To contribute to the submission, please email team@rdamurray.org.au or contact us for a confidential conversation.
THE IMPACT ON REGIONAL COMMUNITIES
The collapse of REX Airlines has led to significant economic and social consequences for regional communities. The Australian Competition and Consumer Commission (ACCC) reported an average fare increase of 20-30% on affected regional routes, with some travellers paying as much as 50% more. This increase in airfare prices has further isolated regional communities, making it harder for residents to access critical health services, education, and maintain social connections.
Economically, the collapse has affected the visitor economies, workforce supply to major projects, and created severe financial pressures on regional airports. Local supply chain opportunities have also been diminished, further impacting the economic stability of these regions.
GOVERNMENT SUPPORT AND UNCERTAINTY
The Australian Government has provided $80 million to keep REX Airlines’ regional routes active during a planned extension of the business’ voluntary administration. However, beyond 30 June 2025, there is no certainty that these services will continue. This uncertainty poses a significant risk to regional communities that rely on these air services for connectivity and economic stability.
RDA Murray, in collaboration with the RDA network, is actively advocating for solutions to mitigate these impacts and ensure fair access to air services for regional Australians.
RDA MURRAY'S ADVOCACY
RDA Murray, together with the broader RDA network, is playing an active role in advocating for fairer airfares and reliable air services for regional Australia.
The RDA NSW & ACT Committee has proposed the implementation of a Regional Air Services Subsidy Scheme (RASSS) to ensure affordable and reliable air services for regional communities. This scheme would operate based on rolling 10-year funding agreements, with funding sourced through a modest levy applied to flights on high-volume capital city routes.
RDA Murray are committed to ensuring fair access to air services and supporting the economic and social well-being of our regional communities.