Rex Airlines has announced it has plunged into voluntary administration after attempting to compete with Qantas and Virgin Australia on mainline routes. As a result, many jobs are to be axed. The Transport Workers Union says Rex Airlines administrators expect as many as 850 jobs to be cut. “This is another dark day for aviation, with over 600 families faced with sudden joblessness in an industry that has taken hit after hit,” TWU National Secretary Michael Kaine emphasized. “We are working to secure job opportunities at other airlines and aviation companies for ground crew, cabin crew, and pilots.”
For Rex staff such as flight attendant Layla Rackley, losing her job has been tough. “I know this is so frustrating, but the Rex staff, including myself, have lost our jobs very unexpectedly, and we are all heartbroken,” Rackley commented. “I hope your flights get sorted.” Another Rex flight attendant, Makayla Meagher, expressed her shock on social media, saying she was left “devastated” and it was something she thought would never happen. “I’m so grateful for all the friends I have made along the way,” she emphasized. “Please keep Rex staff in your prayers.”
Moreover, Rex Airlines’ fleet of Boeing 737 aircraft that fly on its routes to major capital cities has been grounded. However, the airline will continue to operate regional services using the Saab 340. On the Rex website, a statement was posted mentioning, “Regional Express Holdings Express Limited and a number of its subsidiaries have entered voluntary administration.” As a result, Ernst & Young have been appointed administrators according to a statement posted on the airline’s website.
Despite a competitive industry, both Qantas and Virgin Australia showed support for Rex Airlines falling into voluntary administration. “This is a challenging day for our industry, and we are sad to see Rex enter voluntary administration with the immediate suspension of its Boeing 737 operations,” a Qantas spokesperson said. “We know this will be a difficult period for many Rex customers and employees, and we stand ready to assist.”
Virgin Australia also reacted. “This is a difficult moment for Australian aviation with Rex entering voluntary administration and announcing the immediate suspension of its 737 jet operations,” a spokesman for Virgin emphasized. Furthermore, a spokesman for Virgin Australia stated that the Virgin Australia team is thinking about everybody at Rex. The spokesperson noted that Rex has a proud and important role in Australian aviation, especially in regional Australia.
Sydney Airport CEO Scott Charlton is calling for substantial change within the aviation industry in Australia. “Our first thoughts go to the Rex passengers and employees that will be impacted by the administration,” he said. “What this situation demonstrates is that we need to change some things in the Australian aviation market for competition to thrive because recent history suggests the barriers are too high.”
Help is coming for Rex employees who have been impacted. The Transport Workers Union is having discussions around the status of jobs and the shutting down of jet services business. “It is absolutely critical that as many jobs as possible are protected through the continuation of regional flights while entitlements are secured for those unable to retain employment,” Mr. Kaine advised.
Additionally, Federal Transport Minister Catherine King advised that her department held “significant discussions” with the airline’s leadership. “We will work with Rex. We want to make sure that they have a future as part of aviation in this country, and we’re very determined to make sure that happens. We obviously don’t want to do that at any cost; we want to be involved very closely in what that future might look like.” King also showed support for Rex and stated she wants to ensure the airline has a future as part of aviation in this country and is determined to make that happen.
However, Prime Minister Anthony Albanese criticized the struggling airline’s decision to expand to capital city routes. “There are a range of issues relating to Rex. One is that a regional airline made decisions to invest in routes that they hadn’t previously gone in,” Mr. Albanese stated. “Sydney to Melbourne is not a regional route. It is one of the top-10 routes in the world and at various stages has been literally No.1 in the world. It is a tough industry, aviation.”
Virgin Australia is assisting Rex customers impacted by re-booking them on a Virgin Australia flight free of charge, but customers will need to contact the airline before August 14 to receive the offer. Virgin Australia is also helping customers who have to travel soon, but they need to fill out a form.
Despite numerous support efforts, the airline’s future remains in doubt.
Featured Image: Rex Boeing 737 taking off from Canberra Airport. Photo: Robert Myers/CC/ Wikimedia Commons. Creative Commons Attribution-Share Alike 3.0 Australia license.
