Rex enters voluntary administration

On Wednesday 31st July, Rex Airlines entered voluntary administration and halted all Boeing 737 operations.

Rex has faced challenges with profitability ever since the pandemic. In February, the airline announced a loss of A$3.2 million for the first half of the 2023/24 financial year.

A Rex 737 landing in Melbourne | Photo by: Mitchell R Hope

A spokesman for administrators EY announced this morning that "the aim was to restructure the business so it can continue to service regional Australia". He said in the coming days there would be "further statements made about who is impacted and what it is going to take to turn things around".

The Australian Transport Workers Union said that administrators of Rex are estimating over 850 jobs to be lost due to the airline going into administration.

Rex has now partnered with Virgin Australia to offer affected customers flights between major cities free of charge, with Rex Airlines contacting all affected customers directly.

Virgin Australia said in a statement on its website that any passengers wishing to rebook their flights should contact Virgin before August 14.

A Rex SAAB 340 taking off | Photo by: Rex

While the airline has halted all 737 flights between major cities, Rex’s regional operations using SAAB 340 aircraft will continue to offer the vital service to outback communities where Rex serves as the only air link.

Treasurer Jim Chalmers said it was a "big relief" that Rex will continue to service regional areas while it's in administration.

"It is our top priority to make sure we can continue to serve regional communities because we know how important it is - we're prepared to play a constructive role," he told ABC TV.

A Rex 737 taxiing at Sydney Airport | Photo by: Ryder Magsalin

Rex and Virgin Australia are looking into options to assist regional customers, which may involve Virgin offering Rex's regional services through codeshare or interline agreements.