Flights guaranteed for regional Rex Airlines customers

The federal government has guaranteed regional flight bookings while Rex Airlines goes through voluntary administration.

Transport Minister Catherine King made the announcement on Thursday, just over two weeks since Rex went into administration with debts of around $500 million.

“The Australian government is guaranteeing regional flight bookings for Rex customers for tickets purchased after the administration period began,” Ms King told parliament during Question Time.

The guarantee applies to all regional flight bookings made after 9.31pm on July 30.

Ms King said the federal government wanted to see a strong future for regional aviation it was leaving “all options on the table” to support the continuation of regional flights.

“This guarantee is about assuring customers and communities that they can and should continue booking regional flights with Rex,” Ms King said.

“It’s a message very clearly to regional Australia: We know how important reliable air services are to you. We are not going to allow your communities to be left behind.”

Rex services more than 60 destinations, including 41 routes to regional and remote communities, and 21 serviced exclusively by the airline.

Rex’s voluntary administrators Ernst and Young welcomed the move.

“The guarantee will help Rex to keep flying while we undertake the recapitalisation of the airline and secure its future,” EY’s Sam Freeman said in a statement.

“We’re currently undertaking a process to find an investor committed to a sustainable commercial regional network.”

Mr Freeman said the guarantee was a positive step in securing the future for Rex’s roughly 1200 employees and all Australians who depended on the airline’s services.

The Transport Workers’ Union backed the government guarantee, but slammed the administrator for “delays and uncertainty” on the owed entitlements of 343 workers made redundant so far.

“This is a stop-gap measure which must be followed by further well-designed intervention to secure redundant workers’ entitlements as soon as possible, guarantee a long-term future for regional air travel, and provide a seat at the table for the public,” National Secretary Michael Kaine said.

“Hundreds of workers who lost their jobs in the blink of an eye have now been waiting two weeks for any information on how or when they’ll be able to access their owed entitlements.”

Meanwhile, Mr Kaine said, Rex chief executive Neville Howell could be in line for golden handshake after securing a 12-month termination period in his contract six days before the airline went into administration.

“Workers deserve answers and those answers need to be in their best interests,” he said.

Rex announced the change to Mr Howell’s termination conditions to the stock exchange on July 25.