But Australia’s third largest domestic airline may have government support waiting in the wings.
Rex has officially entered voluntary administration, with Samuel Freeman, Justin Walsh and Adam Nikitins from Ernst & Young Australia (EY) appointed to oversee the airline’s financial health.
The airline has grounded its fleet of nine Boeing 737 jets flying interstate jet services, however its regional operations are unaffected and will continue to fly.
Prime Minister Anthony Albanese has said the government is keeping a very close eye on developments.
Federal Minister for Transport, Catherine King, added that the government is “putting some contingencies in place” in an effort to ensure people in regional centres continue to receive service.
Rival Virgin Australia has stepped in, offering to rebook affected passengers onto an equivalent service free of charge, with customers asked to contact the airline prior to 14 Aug to avail the offer.
More details in today’s issue of Travel Daily.