REX Airlines

The Future of Regional Air Travel Get The Latest on Rex Airlines

Rex Airlines (Regional Express), Australia’s third-largest airline and a key provider of regional air services, entered voluntary administration in July 2024 following unsuccessful efforts to expand into competitive capital city routes. Since then, administrators from EY Australia have been working to secure the airline’s future through recapitalisation and a potential sale. 

Why This Matters 

Rex plays a critical role in connecting regional and remote communities across Australia. Its services are essential for ensuring equitable access to education, healthcare, employment, and economic opportunities. The continuation of these routes is a national priority, particularly in areas where air travel is often the only fast and reliable transport option. 

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 [email protected] or contact us for a confidential conversation. 

What's Happening

  • A new sale process is currently underway, led by EY Australia and managed by investment bank Houlihan Lokey. 
  • The federal government has indicated a strong preference for a private-sector buyer and is working with shortlisted bidders to support a successful sale. 
  • Any support provided will be conditional on the buyer committing to maintain reliable regional services, ensuring taxpayer value, and demonstrating sound governance. 
  • In June 2025, the voluntary administrators for Rex announced their intention to apply to the Federal Court of Australia to extend the convening period of the voluntary administration to December 2025. If approved, the Albanese Government will continue to assist regional communities in maintaining access to critical aviation during this time by extending the ticket guarantee on regional routes. The existing loan of up to $80 million provided to the administrators – which is yet to be fully expended – would remain available to ensure the airline can continue to operate.

Government Intervention

To date, the Australian Government has taken a number of steps to keep Rex operating: 

  • $80 million in operational funding has been provided to ensure flights continue through to June 30, 2025. 
  • $50 million in debt acquisition from Rex’s largest creditor has given the government greater oversight in determining the airline’s future. 
  • Exemptions for regional flight slots at Sydney Airport have been extended until October 2026 to safeguard Rex’s regional access. 

If the current sale process is unsuccessful, the government has confirmed it will begin contingency planning — including the possibility of acquiring the airline to protect essential regional routes. 

Potential Nationalisation 

While nationalisation is not the preferred outcome, the Federal Government has begun detailed contingency planning to ensure continuity of regional air services. The 2025–26 Federal Budget outlined preparations for potential government acquisition of Rex if a private buyer cannot be secured. Should Rex be nationalised, it would mark the first government ownership of an Australian airline since Qantas was privatised in the 1990s.  

Challenges Ahead 

Although Rex had been operating profitably before its expansion into capital city routes, sustaining thin and remote routes remains difficult without support. The cost of upgrading its aging fleet is also a factor, with newer aircraft likely to increase both capital and operating costs due to additional staffing and security requirements at regional airports. 

What’s Next 

  • EY administrators have applied until the end of 2025 to secure a buyer. 
  • If no sale is reached, the government will consult with state and territory partners on next steps, including the possibility of full acquisition. 
  • Regional communities can expect continuity of service through to mid-2025, with ongoing government support ensuring routes remain operational during this period. 

RDA Murray's Role

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, 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 is committed to ensuring fair access to air services and supporting the economic and social well-being of our regional communities. 

Staying Informed 

This page will be updated as developments unfold in the sale process or government response. The future of regional connectivity remains a national priority.