TWU:
With Rex now in voluntary administration, the TWU said measures to protect as many jobs as possible and secure entitlements in the event of job losses are urgently required, while the long-term solution of a stand-alone regulator is the only way to sustainably fix the broken aviation industry.
Following a two-day trading halt and speculation over administration, EY wrote to the TWU overnight to confirm it has been appointed as administrators, with jobs and the closing down of the jet services business to be discussed today.
The TWU is calling on the Federal Government to look at an equity stake to protect as many jobs as possible, entitlements for those facing redundancy, and to provide a voice for regional Australia.
The TWU has slammed a vicious, hyper-competitive and unregulated market that has allowed an immoral Qantas to dominate at the expense of workers and the community.
The union movement has joined TWU members in calling for a Safe and Secure Skies Commission to ensure aviation meets the needs of the community, ensures healthy competition, and rebuilds good, secure jobs across our airports.
TWU National Secretary Michael Kaine said:
“Just four weeks after Bonza went into liquidation, hundreds more aviation workers are facing stand downs, job losses and uncertainty. 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. The TWU is in discussions with other aviation companies about job opportunities for Rex staff.
“The Federal Government has sent positive signals that it does not intend to leave regional Australia in the lurch. An equity stake would serve workers, regional Australia and taxpayers now and into the future. It would be the opposite approach to the Morrison Government bungle of billions in no-strings taxpayer funding to Qantas which went on to illegally sack 1700 workers, price-gouge customers and sell ghost flights.
“Aviation is locked in a cycle of crises. While the Rex administration is handled as quickly as possible, we also need a long-term fix to the unregulated market dominance that sees Qantas popping the champagne corks while competitors are squeezed out and workers are left on the scrap heap.
“Given the size of Australia, the question at the heart of this crisis is: what support do we need to make sure there’s a viable aviation industry that can serve the community reliably and affordably? A Safe and Secure Skies Commission to bring balance and binding standards is the answer to that question.”
Sydney Airport:
The Rex Airlines administration is a difficult day for Australian aviation, and evidence that action needs to be taken to improve competition and efficiency.
Sydney Airport CEO Scott Charlton said: “Our first thoughts go to the Rex passengers and employees that will be impacted by the Administration.
“We are pleased to see that the Administrator will continue regional operations to and from Sydney during this period as these services are critical for many regional communities.
“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.
“We have a rare opportunity to get this right with the proposed slot reforms at Sydney Airport and through the imminent Aviation White Paper, and we remain ready to work with the Government on implementing both.”
Australian Travel Industry Association (ATIA) CEO Dean Long:
“Rex Airlines has been a lifeline for much of regional and rural Australia, ensuring these communities stay connected to the rest of the country. Rex’s entry into administration is a significant blow not just for these areas but also for the competitive landscape of Australian aviation. We remain hopeful that Rex is able to navigate this challenging period and emerge to trade again. In the meantime, your travel professional is doing everything they can to work through your options.”
The Ascott Limited Australasia Managing Director David Mansfield:
Melbourne Airport is deeply disappointed by the suspension of Rex jet services and stands ready to assist passengers where we can.
Rex services from Melbourne to Sydney, Brisbane, Adelaide, Canberra, Hobart, the Gold Coast and Perth have been cancelled.
Affected passengers will be reaccommodated on Virgin Australia flights free of charge.
Passengers due to travel on these services within the next 48 hours are advised to contact Virgin Australia on 13 6789 for rebooking.
Other passengers with Rex jet bookings should visit the Virgin Australia website for a rebooking form.
Rex regional flights to Mildura, Merimbula, Mt Gambier, King Island, Burnie, Devonport and Wagga Wagga continue to operate as scheduled and passengers booked on these services should proceed to the airport as normal.
Melbourne Airport was proudly home to Rex’s largest 737 jet base and our thoughts are with the staff affected by this announcement.
The team at Melbourne Airport will continue to work hard to facilitate new entrants to the Australian market because of the benefits they bring to consumers.
