FIFO service escapes Rex Airlines grounding

Rex Airlines has entered voluntary administration, grounding its 737 jet operations between major centres across the country. Administrators at Ernst & Young Australia said the company's National Jet Express (NJE) services were not affected. Rex began a serious bid for the FIFO market in Queensland last year after finalising the $48 million purchase of National Jet Express, the regional arm of Cobham Aviation Services Australia, in 2022. NJE operates a fleet of De Havilland Dash 8-400NG and Embraer 190 jets serving clients in the mining and resources sector across Australia. NJE is not part of the administration and those flights are continuing to operate as normal, according to EY Australia. Related: New air services between Cairns and the coalfields EY Australia said also that Rex Airlines' regional Saab 340 flights were not affected by the administration at this stage and would continue to operate. "Prepaid ticket holders will continue to have their tickets honoured by the Rex Group on regional routes," EY Australia said. The Rex Group’s domestic fleet of Boeing 737 aircraft are all grounded, with flights between major airports cancelled. Virgin Australia has made an offer for Rex customers with an existing ticket on a flight cancelled due to the administration process to transfer their ticket free of charge to overlapping Virgin Australia services. Eligible Rex customers who wish to take up Virgin Australia’s rebooking offer must contact the Virgin Australia Guest Contact Centre on 13 67 89 or visit www.virginaustralia.com by August 14. Virgin Australia Group chief executive officer Jayne Hrdlicka said the airline was also offering support to Rex employees who may be impacted by the administration. "Recognising the importance for regional Australians to have access to a comprehensive domestic and international network, Virgin Australia also intends to partner with Rex’s regional business to enable seamless access to Virgin Australia’s domestic and international destinations through potential codeshare or interline arrangements in the future," she said. The Transport Workers' Union 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. TWU National Secretary Michael Kaine. “Just four weeks after Bonza went into liquidation, hundreds more aviation workers are facing stand downs, job losses and uncertainty," TWU National Secretary Michael Kaine said. "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." Mr Kaine said the aviation was 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." You may also like: https://industryqld.com.au/bonza-grounding-limits-regional-competition/

FIFO service escapes Rex Airlines grounding

Industry Queensland

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