Here are all the reasons you can't – video] While Rex’s core regional operations have continued in the months since – in part through the government guaranteeing routes connecting isolated communities would continue to function with a loan of up to $80m – the future of the airline has become increasingly unclear, with the administration period extended to provide more time for a potential buyer to emerge.
As part of the new measures announced to support Rex, the government will also provide a waiver to the “use it or lose it” test for slots at Sydney airport, ensuring it retains access to its takeoff and landing slots until October 2026 – however this applies only to its regional slots, with no discussion of a resumption of its jet services between metropolitan cities.
In an attempt to improve the airline’s sales proposition, the federal government last month announced it would acquire $50m of debt from Rex’s largest creditor, private equity firm PAG Asia Capital, making the Australian government the principal secured creditor of Rex.
On Wednesday, the government – which had previously shot down speculation about taking ownership of Rex – said it would still “work with shortlisted bidders” on what support it could provide to “maximise the prospect of a successful sale”, but appeared less optimistic about the potential to find a new buyer.
The Albanese government is preparing for the possibility it may have to acquire embattled regional airline Rex and operate it as a state-owned carrier, as efforts to find a new buyer to rescue the airline remain fruitless.
