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_Saab_340B_at_Wagga_Wagga_Airport.jpg) | |||||||
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| Founded | 11 July 2002; 22 years ago (2002-07-11) (amalgamation) | ||||||
|---|---|---|---|---|---|---|---|
| Commenced operations | 2 August 2002; 22 years ago (2002-08-02) | ||||||
| AOC # | CASA.AOC.0109 | ||||||
| Operating bases | |||||||
| Frequent-flyer program | Rex Flyer | ||||||
| Fleet size | 58 | ||||||
| Destinations | 56[1] | ||||||
| Parent company | Regional Express Holdings | ||||||
| Headquarters | Mascot,New South Wales,Australia | ||||||
| Key people | Neville Howell (CEO)[2] | ||||||
| Website | www | ||||||
Rex Airlines Pty Ltd is an Australianregional airline based inMascot,New South Wales. It operates scheduled regional services using turboprop aircraft. Between 2021 and 2024, Rex also operatedjet services between selected major Australian cities. In July 2024, it collapsed and was placed into voluntary administration.
It is the primary subsidiary ofRegional Express Holdings, itself predominantly foreign-owned by Singaporean businessman Lim Kim Hai and Hong Kong investment firmPAG.[3] Rex is Australia's second-largest regional airline by number of regional destinations, serving 45 regional destinations, behindQantasLink, who serve 55 regional destinations across Australia.[4][5]
On the night of 30 July 2024, the airline ceased all bookings for domestic jet service routes to capital cities and fell intovoluntary administration, appointing joint administrators fromErnst & Young. It came one day after Rex stopped trading on theAustralian Securities Exchange (ASX), amid fears the airline could halt all operations. Rex continues to operate some regional services, which are being funded byPAG Asia[6] and Queensland government[citation needed], despite its administration.
In September 2024, two months after the commencement of the administration, it was revealed that no buyer is currently found, with fears for the company to be collapsing or broken up.[7][8] It did, however, previously get an extension from theFederal Court of Australia to further facilitate the sale process.[9]
In November 2024, the company got another extension of the administration and received funding from the government to keep afloat.[10] It also had previously started stripping a few subsidiaries, such asPel-Air toToll Group.
The company is currently in the midst of a lawsuit by thecorporate watchdog overmisleading and deceptive conduct of its ex-directors, alleging the members mislead the market on its financial position during FY22.
However, in January 2025, the federal government bought $50 million debt from the senior lender PAG in another effort to secure the future of the airline, and supported administrators in again finding a buyer.[11]
As another reversal in the government's negotiations with the airline, the government pledged to buy the airline if no buyer is found.[12]
The airline was established in 2002 when the Australiawide Airlines consortium (set up by formerAnsett Australia employees) acquiredHazelton Airlines andKendell Airlines, before merging the companies and starting operations asRex in August 2002.[13] In 2005, Australiawide Airlines was renamedRegional Express Holdings andpartially floated on theAustralian Securities Exchange.[14] On 30 November 2005, Rex announced the acquisition of theDubbo-basedAir Link, another regional airline.[15]
In October 2007, Rex expanded into Queensland when it commenced operations betweenBrisbane andMaryborough.[16] This exacerbated an existing problem within the company of not having enough pilots to crew its flights (due to the expansion of larger airlines, especiallyJetstar andVirgin Blue),[17][18] and Rex suspended operations out of Brisbane[19] (and fromSydney toCooma during the summer "low season" for this route to theNSW ski fields)[20] in November 2007. To provide a medium-term solution to the pilot shortage, Rex announced that it was establishing a cadet-pilot flight-training programme.[21]
In November 2015, Rex announced the resumption of services to the NSW Snowy Mountains in conjunction with Snowy Mountains Airport Corporation, with the flights resuming in March 2016.[22] In December 2015, Rex announced that it would be commencing operations inWestern Australia in February the following year after being selected by theGovernment of Western Australia to be the operator of regulated RPT routes after a tender process. Initially operating fromPerth toAlbany andEsperance, in July 2018 the Western Australian operations expanded to includeCarnarvon andMonkey Mia. It brought Rex's weekly flights to roughly 1,500 across 60 destinations.[23]
Starting on 6 April 2020, Rex significantly scaled back all its regional services due to theCOVID-19 pandemic, continuing to only offer government-subsidised services within Queensland and Western Australia and one flight a week between all 54 regional and remote communities within its route network. Services includingAdelaide toPort Augusta, Sydney toNewcastle and Sydney toArmidale were suspended.[24]
In June 2020, eyeing the demise ofTigerair Australia, Rex announced interest in expanding into the domestic airline market between Sydney,Melbourne and Brisbane. Rex leased sixBoeing 737-800s previously leased byVirgin Australia to operate the new services, with the first delivered in November 2020.[25][26] The first jet operations began on 1 March 2021 on the Melbourne to Sydney route.[27] Also in June 2020, Rex announced that it had entered into a memorandum of understanding withATR to explore options for replacing theSaab 340 fleet withATR 42 andATR 72 aircraft.[28] Following the airline's launch of jet services in March 2021, Rex replaced the announced Brisbane jet services in early April with services to Adelaide and Gold Coast, with the start of services occurring between 29 March and 1 April.[29] The airline later cancelled all 737 fights and went into administration.
| |
| Company type | Public company |
|---|---|
| ASX: REX | |
| Industry | Air travel |
| Founded | 2002 |
| Headquarters | Sydney, Australia |
Key people | John Sharp AM, Chairman[30] |
| Products | Airlines,air cargo,air charter |
| Revenue | A$353.388 million (2024)[31] |
| A$1.379 million (2024)[31] | |
| Website | www |
Regional Express HoldingsLimited is theparent company of a number of airline and associated companies in Australia. It is based inMascot, New South Wales (a suburb ofSydney) and is a public listed company on theAustralian Stock Exchange. Regional Express Holdings arose from the 2001 collapse ofAnsett Airlines, which was the parent company ofKendell Airlines andHazelton Airlines. A group of Singaporean investors and a collection of Australian private investors purchased the Hazelton and Kendell businesses, which were profitable entities before they were taken over by Ansett. The investors formedAustraliawide Airlines, which was officially incorporated on 12 February 2002. The assets of the two airlines were purchased by Australiawide and merged to form the airline Regional Express, known as Rex. In 2005 Australiawide offered a percentage of the owners' shares (35 million out of 115 million shares, or 30.43%) to the public in a float.[32][33] At the same time an agreement was reached with the owners ofPel-Air that Australiawide would purchase Pel-Air.[34]
As part of the public float process, Australiawide Airlines' name was changed toRegional Express Holdings. Regional Express Holdings is the owner of a number of other companies.[35] The main asset isRegional Express Pty Ltd. which is the company that operates the business of the airline Regional Express (Rex) and owns Rex Airlines Pty Limited. Rex Airlines Pty Limited was registered on the 6 July 2020 as part of Rex domestic expansion plans, responsible for issuing tickets on behalf of Regional Express Pty Limited. Another company isAir Partners Pty. Ltd., which is the company that ownsNational Jet Express and Pel-Air and Rex Flyer. The third subsidiary company isRex Investment Holdings Pty. Ltd., which owns the Australian Aero Propeller Maintenance and Australian Airline Pilot Academies based in Wagga Wagga and Ballarat.
_Boeing_737-8FE(WL)_at_Wagga_Wagga_Airport.jpg)
In July 2024, the company requested atrading halt.[36][37] This sparked comparisons withBonza, that had collapsed and later was wound up earlier that year, and calls by theTransport Workers' Union of Australia for government intervention, with Prime MinisterAnthony Albanese asking for time and conditions and criticising the company's move away from regional service.[36] It later suspended ticket sales with plans to exit out of the capital city market and appointedEY as administrators.[38] Capital city flights were suspended, with an agreement reached withVirgin Australia to accommodate affected Rex customers between 30 July and 14 August 2024.[39] On 31 July, the company was placed intovoluntary administration and cancelled all capital cities flights, but continued to operate regional services.[37][40][41] PAG has held off taking the company underreceivership, with the hope that the company will be sold instead.[42][43] The leases on three of its Boeing 737s were taken over by Virgin Australia.[44]
In August, the federal government guaranteed flights with Rex or moneyback. Administrators thanked the move as added certainty for customers during the process. However, there has been no specific dollar metric set until the event of cancellation, or say on whether further intervention might be needed to support the business or find a buyer including an outrightbailout.[45][6] This has also drawn slight criticism from unions and the federal opposition, calling it a "stopgap measure" and calling to go further as stated, including guaranteeing staff on theFair Entitlements Guarantee - a system that was put off in the case of Bonza -, with fears also for keeping remote communities connected to transit and essential services.[6] Meanwhile, after an extended investigation into the source of a $500 million debt or possibleinsolvent trading, the administrators blamed a series of factors principally a pilot shortage and other supply chain issues, ex-staff entitlements and half-empty seats for the collapse.[45] The company is indebted to a total of 4,800 creditors including ex-staff, airports and funders.[45][46][6]It is estimated that the administration of Rex has resulted in about 600 job losses within the company[45] and counting,[46] with the assurance that business is not affected and that the staff are not being stripped right down but in fact were returned to original levels.[46]
On 23 August, the company was granted an extension of the administration by theFederal Court of Australia to 25 November, allowing more time to process and bind expressions of interest but does not intend to use all of it to find a buyer.[9] It was later revealed that there are reports of no real interest in buying the company and that the holding company may be either broken up and sold, placed intoliquidation,[8][7] and/or moved on to receivership.[43] On 8 October, it was revealed aYouGov poll suggested high popular demand for further government intervention such as part-nationalisation of the company and setting up a separate industry commission, such as a "Safe & Secure Skies Commission", to reduce fierce monopoly and fair work and consumer affairs violations plaguing the industry.[47]
In October 2024,Pel-Air was sold to theToll Group.[48][49]Wagga Waggaflight school, Australian Airline Pilot Academy was also put up for sale for $17 million.[50]
In November 2024 its administration was extended again to 30 June, with the government finally also in talks of giving the company $80 million and early access to the Fair Entitlements Guarantee.[51][10] This move has angered rivals, who called out the government and administrators for not allowing for any discourse whatsoever and not looking into the greater competition or situation.[10]
Administrators have found themselves intwo lawsuits, including one byASIC alleging the company mislead investors on its financial trend before the collapse.
On 23 January 2025, the federal government announced it would acquire the $50 million in debt from the senior lender PAG in another effort to secure the future of the airline, becoming the new major creditor for the company and, as a creditor, filing to be a voting member in the administration's Committee of Inspection. The Government is reported to be 'supporting' the company in finding a buyer, after the first effort did not find a buyer. While gettingbipartisan support from the Opposition, the announcement is made out by the government and analysts as a move to support regional areas in the nearnext election.[11][52]
On 12 February 2025, the federal government announced it would buy the airline if no buyer was found, coinciding with support of prospective buyers for the company. It has clarified it is not particularly in the list of buyers for the company, calling on the private sector to see an outcome for the company first. It will be the first nationally-owned airline since the privatisation ofQantas in 1997.[12] This saw optimism from the TMU, but however, this escalation has sparked some opposition from the Coalition andconservative outlets, pointing out atquestion time that thetaxpayer shouldn't foot the bill to keep the airline afloat, that rivals should have a say in the process which they currently don't, and cynical connections to Albanese himself and if he will appoint disgracedQantas CEOAllan Joyce, while the Government rebutted with airlines collapsingunder their watch and theclose connections to the board of the airline who had grandiose plans which ultimately ran the airline to the ground. This has also sparked some opposition from rivals, with the founder ofNexus Airlines Michael McConachy commenting that the sale campaign itself was poor and staggered and a collapse would not affect competition as others can step in and the actually-monopolised routes are few and state-underwritten.[53]
Rex has been criticised for its close political and financial relationship with theCoalition, particularly the centre-right to right-wingNational Party of Australia.John Sharp, Rex's current deputy chairman, was a National Party member of the Australian Parliament from 1984 to 1998.[citation needed]
Rex has provided National Party members with flight tickets free of charge during election campaigns, and is a major donor to the political party.[54]
During the early stages of the COVID-19 pandemic in 2020, it was revealed that Rex received more taxpayer funds thanQantas andVirgin Australia combined,[55] despite the Australian flag-carrier being more than six times larger than Rex by number of aircraft and employees.[citation needed] In response to this revelation, the then-Labor opposition accused the then-Coalition Government of "supporting their National Party mates", a reference to the close friendship between John Sharp and then-deputy Prime Minister and Transport MinisterMichael McCormack, who authorised the handout.[56][57]
In 2022, the year the Coalition lost government federally, Rex named a newly delivered 737-800 aircraft after McCormack at the airline's 20th anniversary celebrations.[58]
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Since its inception, Rex has been involved in tense public disputes with many regionalcouncils in Australia, whom operate many regional airports, over airport fees, high airfares and alleged price gouging, airport security costs, operational requirements as well as negative comments about the airline made by regional mayors and councillors, and have made various threats with the intention of pressuring councils to the point where they succumb to satisfying the company's demands.[59] Threats made by Rex, which in many cases have been followed through, have included temporary or permanent suspension of flights to relevant cities and towns, alleged acts ofblackmailing councils, and banning councillors from flying with the airline.[59][60][61] In some cases Rex has directly withdrawn flights to towns in response, without engaging with affected councils.[59] In some cases, Rex's withdrawal of services has left many towns across Australia without an air service.[citation needed]
In September 2024, it was revealed that USA-based firm Jet Midwest Group filed aUS$7,200,000 (AU$10,737,760) lawsuit alleging Rex unlawfully dismantled parts and scrapped 4SAAB 340 aircraft in the firm's possession when they were stored at anaircraft boneyard inKingman Airport,Arizona.[62][63] The lawsuit, filed by the firm in theSupreme Court of New South Wales, alleges Rex instructed a third party to remove these parts, which included engines and propellers, as well as to scrap the airframes, and profited from the sale of these components.[63]
The litigant was soon deterred from proceeding by the court, which agreed with the administrators citing that it would be a huge "costly" logistical distraction from the company which will affect the efficacy of the administration. Jet Midwest backed out agreeing that there is no "urgency" in the claim seeing it even took 4 years to take action.[64]
In December 2024, following an investigation regarding anASX tipoff, theAustralian Securities and Investments Commission began legal proceedings against four former directors of the company over allegations ofdeceptive and misleading conduct and dereliction of directorial duty regarding accurately and timely reporting the company's financial performance to the market leading up to its collapse.[65][66] The regulator alleges it was making baseless, disingenuous claims to investors regarding its financial position which also contradicted a massive $35 million profit downgrade forecast.[66] The regulator clarified it is not looking to personally fine the company (especially "given its current circumstances") or claim outrightinsolvent trading, but leave it to the Supreme Court of New South Wales to declare contravention first which then may result in fines or bans targeted at the offenders themselves.[66]
ASIC later alleged that Rex told investors it shall receive a full-year profit, whilst reeling from aEBT $7 million loss in February 2023 following a $109 million loss in 2022 and seeking $10 million funding citing its cash reserves being "critically low" and "disappointingly and bewilderingly" terrible sales.[67] The airline would ultimately still go on to make a $32 million loss that year in total.
Rex Airlines initially offered regional flights from various bases across Australia using turboprop aircraft, but in March 2021 began flying between its bases using jet aircraft with flights between Melbourne and Sydney. Prior to its voluntary administration in July 2024, its domestic flights were between Melbourne, Sydney, Brisbane, Canberra, Gold Coast, Adelaide and Hobart.[68]
Rex Airlines operates to the following 45 destinations[69] as of August 2023[update]:
Rex Airlines currently has aInterline agreement withEtihad Airways.[75]
As of July 2024[update], Rex Airlines operates the following aircraft:[citation needed]
| Aircraft | In service | Orders | Passengers | Notes | ||
|---|---|---|---|---|---|---|
| J | Y | Total | ||||
| Saab 340 | 57 | — | — | 30 | 30 | 23 aircraft parked[citation needed] |
| 33 | 33 | |||||
| 34 | 34 | |||||
| 36 | 36 | |||||
| Total | 57 | — | ||||
_Boeing_737-8FE(WL)_landing_at_Canberra_Airport_(6).jpg)
Rex Airlines has previously operated the following aircraft:[citation needed]
| Aircraft | Total | Introduced | Retired | Notes |
|---|---|---|---|---|
| Boeing 737-800 | 10 | 2020[76] | 2024 | Grounded due toadministration. |
| Fairchild Metro 23 | 7 | 2002 | 2006 | Inherited fromKendell Airlines. |
Rex operates the world's largest fleet ofSaab 340 aircraft.[77] The delivery of 25 ex-American Eagle Airlines Saab 340BPlus aircraft started in mid-2007 and enabled the expansion of services and the phase-out of the airline's Saab 340As, and some older B models. The 340BPlus has a quieter and more comfortable interior.
In July 2008 the company announced that all of its 340As would be phased out; however one rejoined the fleet in July 2015 after a 7-year stint with Rex's subsidiary airlinePel-Air and remains in service as of January 2020.[78][79][80]
The airline also previously operated some FairchildMetro 23 aircraft seating 19 passengers, but the aircraft were later phased out.
The airline operated an all-Saab 340 fleet with three variants of the type until December of 2020,[80] when the airline commenced jet aircraft operations following the delivery of its firstBoeing 737-800.
_Piper_PA-28-161_Cherokee_Warrior_III_taxiing_Wagga_Wagga_Airport.jpg)
In November 2007, Regional Express Airlines and Mangalore Airport Pty Limited created a joint venture pilot academy called the Civil Aviation Training Academy, based atMangalore Airport in Victoria.[91] In April 2008, Regional Express Airlines fully acquired the Civil Aviation Training Academy and it was renamed to Australian Airline Pilot Academy.[92]
On 18 February 2009, Regional Express Airlines announced that the Australian Airline Pilot Academy (AAPA) would be relocated from Mangalore Airport toWagga Wagga Airport in partnership with theCity of Wagga Wagga starting in April 2009.[93][94]
On 27 May 2010, the AAPA campus at Wagga Wagga Airport was officially opened by FederalMinister for Infrastructure, Transport, Regional Development and Local Government,Anthony Albanese.[95]
On 19 November 2019, AAPA purchased ST Aerospace Academy Australia atBallarat Airport in Victoria, taking it over as a second campus.[96]
In addition to training aircraft, the flight school has fiveflight simulators, including a full motion Saab 340 simulator. There is also one retired Saab 340B at Wagga Wagga used as a training aid.
On 3 November 2024, it was confirmed that AAPA was up for sale after Rex Airlines went into administration in July 2024. It was reported that there was interest from over 40 parties based both domestically and internationally.[50]
As of December 2021[update], the Australian Airline Pilot Academy operates the following aircraft:[97]
| Aircraft | In service | Location |
|---|---|---|
| Cessna 152 | 1 | Ballarat |
| Cessna 172S | 14 | Ballarat |
| Piper PA-28 Warrior | 16 | Wagga Wagga |
| Piper PA-44 Seminole | 10 | Ballarat and Wagga Wagga |
| Beechcraft King Air C90GTi | 1 | Ballarat |
| Beechcraft Super King Air B200 | 1 | Wagga Wagga |
_Saab_340B_at_Wagga_Wagga_Airport.jpg)
_Saab_340B_at_Wagga_Wagga_Airport.jpg)
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