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🇦🇺 Australia /Energy & Infrastructure

Government bails out Rex's multi-million-dollar debt to regional airports

From ABC Australia · () English

Summarized by DistantNews. Read the original for the full story.

At a glance

News Sources not specified Outcome reported
  • The Australian federal government has paid $4.8 million to bail out Regional Express Holdings (Rex) airlines, covering debts owed to 34 regional councils.
  • This bailout is part of a larger support package following the acquisition of Rex by US-based Air T, which included $60 million for the takeover and $108 million for restructuring government debt.
  • The financial assistance is crucial for maintaining air connectivity to regional and remote areas, with councils expressing relief that Rex will continue flying.

The Australian federal government has fully settled the debts owed by Regional Express Holdings (Rex) airlines to regional councils across the country, disbursing $4.8 million in a significant bailout. Thirty-four local government areas will receive funds, with Dubbo Regional Council in New South Wales receiving the largest portion at $598,672.

This financial lifeline comes after Rex entered voluntary administration and was subsequently acquired and recapitalized by US aviation group Air T in December. The Australian government had previously backed Air T's takeover with a $60 million support package, alongside an additional $108 million allocated for restructuring existing Australian government debt.

It's really important the federal government has stepped up and kept Rex flying.

· Josh BlackMayor of Dubbo Regional Council, commenting on the significance of the federal government's bailout for regional aviation.

Mayors and council CEOs have welcomed the bailout, emphasizing its importance for regional infrastructure and ratepayers. Josh Black, Mayor of Dubbo Regional Council, called it a "good result for ratepayers," highlighting the constant battle regional airports face in upgrading and maintaining infrastructure. He stressed the federal government's role in "keeping Rex flying."

It was probably double that, but we did see some money flow in before administration.

· Ben TaylorCEO of the District Council of Ceduna, discussing the debt owed by Rex Airlines prior to its administration.

Ben Taylor, CEO of the District Council of Ceduna in South Australia, noted that the debt owed to his council, $78,699, was a significant burden for ratepayers. He explained that the council's money was outstanding, and for councils owed hundreds of thousands, the debt was a considerable strain. He mentioned that some payments were received before Rex went into administration.

The office of Transport Minister Catherine King stated that the bailout is part of the government's ongoing commitment to supporting regional and remote aviation. The government aims to continue working with these communities to strengthen air connectivity, recognizing Rex's vital role as the sole airline operator for 21 regional and remote airports.

It's not the council's money, it's actually the ratepayers' money that's outstanding.

· Ben TaylorCEO of the District Council of Ceduna, explaining the financial impact of Rex's debt on local residents.
About this summary

Originally published by ABC Australia. Summarized and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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