The Federal Government’s acquisition of $50 million of Rex Airlines’ debt is an important measure to ensure the future of a competitive domestic airline sector in Australia.
“We welcome the announcement that the Federal Government has taken this step to become the principal secured creditor of Rex. It’s great news for travelling Australians, the communities who rely on Rex and for the health of the Australian Aviation sector. Rex is too important to be allowed to fail,” says ATIA CEO, Dean Long.
“We need a third airline, and if Rex is allowed to fail, the reality is that even if another airline decides to enter this market, it will take so much longer for them to come into play. That’s a delay that would hit regional and rural Australia hard as well as the hip pocket of travellers.
“Allowing the company to continue means there’s also an increased likelihood that our Members, the travel businesses who are owed money as a result of having sold Rex tickets, are more likely to get at least some of their money back.”
“Currently, 98% of passengers across this country only have a choice of two airlines, and that’s not great, especially considering we already have the most concentrated air market in the world. Ensuring the future of a third airline in Australia means we have competition in the skies as well as access for regional and rural Australia,” he said.
