Airline halts major routes amid voluntary administration—will your flight be impacted?
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The skies have become a little less friendly for Australian travellers as Rex Airlines has entered voluntary administration, causing a significant shake-up in the industry.
This move has led to the immediate cancellation of all flights between major city airports, leaving thousands of Rex customers in a frantic search for alternative travel arrangements.
The airline, which has been a lifeline for regional communities for over two decades, has cited financial difficulties as the reason for this drastic measure.
While Rex's fleet of Saab 340 aircraft will continue operating regional flights as usual, the grounding of their domestic Boeing 737 services has disrupted many travellers' travel plans.
In a statement on their website, Rex has assured customers that they are being contacted directly regarding the cancellations.
‘Flights between major airports have been cancelled, with the Rex Group’s domestic fleet of Boeing 737 aircraft all grounded,’ the statement said.
‘Affected customers are being contacted directly by Rex.’
In a show of solidarity and support, Virgin Australia has stepped in to assist stranded Rex passengers.
Virgin has offered to rebook approximately 4,600 affected Rex customers onto their flights free of charge.
Virgin Australia's CEO, Jayne Hrdlicka, has stated that their staff are ready to help and that all customers need to do is call and rebook their flight, providing their Rex booking reference number.
‘All they need to do is call and rebook their flight to show they’ve got a booking reference number from Rex that allows them to rebook with us,’ she said.
‘We’re trying to accommodate people as close to their time of departure as possible.’
‘We’ll be ongoing to support the regional business to ensure that it is successful because we do believe they’re a really important part of the industry.’
The ripple effect of Rex's grounding is also felt by its workforce, with approximately 2,000 employees facing uncertainty.
Transport Workers Union National Secretary Michael Kaine described it as a challenging day for Rex employees.
‘We again are in this situation ... aviation seems to be in crisis,’ he said.
‘What we want to do is figure out (with our) shoulder to the wheel, what we can do to minimise their angst ... Virgin is putting steps in place to take expressions of interest from the workforce, and that’s really critical.’
Virgin Australia has opened its doors, offering those affected by the 737s' grounding the opportunity to apply for positions within the airline.
The federal government has acknowledged the importance of Rex's services to regional communities and economies and has engaged in discussions with the airline about a support package.
Treasurer Jim Chalmers has expressed a commitment to constructively ensuring the continuity of services to these vital areas.
‘Obviously, there have been discussions, but we want to hear next from the company,’ he stated.
‘Our top priority (is) to make sure we can continue to serve and service regional communities and regional economies because we know how important it is — we’re prepared to play a constructive role,’
As we reflect on Rex's 22-year history, which began in the aftermath of Ansett's collapse, it's clear that the airline's role in connecting regional Australia cannot be understated.
Unlike Bonza, which also entered voluntary administration earlier this year, Rex's ownership of most of its fleet, rather than leasing, may provide stability during this turbulent period.
The airline's main fleet consists of 123 aircraft, including 61 SAAB 340s and seven Boeing 737-800s on lease.
Since the pandemic, Rex has had difficulty achieving profitability, posting a $3.2 million net loss for the first half of the 2023/24 fiscal year as of February.
On Friday, Rex's stock was last seen trading at 56.5 cents before a trading halt, a drop from around 79 cents just a month prior.
In related news, Bonza Airlines entered voluntary administration on Tuesday.
As a result, the airline suspended its operations, leaving passengers stranded. For more details on this development, click here.
Have you ever had an experience where an airline change affected your flight? How did you handle the situation, and were you appropriately compensated? We’d love to hear your thoughts and opinions in the comments below.
This move has led to the immediate cancellation of all flights between major city airports, leaving thousands of Rex customers in a frantic search for alternative travel arrangements.
The airline, which has been a lifeline for regional communities for over two decades, has cited financial difficulties as the reason for this drastic measure.
While Rex's fleet of Saab 340 aircraft will continue operating regional flights as usual, the grounding of their domestic Boeing 737 services has disrupted many travellers' travel plans.
In a statement on their website, Rex has assured customers that they are being contacted directly regarding the cancellations.
Rex Airlines is in voluntary administration, causing all flights between major cities to be cancelled. Credit: Shutterstock
‘Flights between major airports have been cancelled, with the Rex Group’s domestic fleet of Boeing 737 aircraft all grounded,’ the statement said.
‘Affected customers are being contacted directly by Rex.’
In a show of solidarity and support, Virgin Australia has stepped in to assist stranded Rex passengers.
Virgin has offered to rebook approximately 4,600 affected Rex customers onto their flights free of charge.
Virgin Australia's CEO, Jayne Hrdlicka, has stated that their staff are ready to help and that all customers need to do is call and rebook their flight, providing their Rex booking reference number.
‘All they need to do is call and rebook their flight to show they’ve got a booking reference number from Rex that allows them to rebook with us,’ she said.
‘We’re trying to accommodate people as close to their time of departure as possible.’
‘We’ll be ongoing to support the regional business to ensure that it is successful because we do believe they’re a really important part of the industry.’
The ripple effect of Rex's grounding is also felt by its workforce, with approximately 2,000 employees facing uncertainty.
Transport Workers Union National Secretary Michael Kaine described it as a challenging day for Rex employees.
‘We again are in this situation ... aviation seems to be in crisis,’ he said.
‘What we want to do is figure out (with our) shoulder to the wheel, what we can do to minimise their angst ... Virgin is putting steps in place to take expressions of interest from the workforce, and that’s really critical.’
Virgin Australia has opened its doors, offering those affected by the 737s' grounding the opportunity to apply for positions within the airline.
The federal government has acknowledged the importance of Rex's services to regional communities and economies and has engaged in discussions with the airline about a support package.
Treasurer Jim Chalmers has expressed a commitment to constructively ensuring the continuity of services to these vital areas.
‘Obviously, there have been discussions, but we want to hear next from the company,’ he stated.
‘Our top priority (is) to make sure we can continue to serve and service regional communities and regional economies because we know how important it is — we’re prepared to play a constructive role,’
As we reflect on Rex's 22-year history, which began in the aftermath of Ansett's collapse, it's clear that the airline's role in connecting regional Australia cannot be understated.
Unlike Bonza, which also entered voluntary administration earlier this year, Rex's ownership of most of its fleet, rather than leasing, may provide stability during this turbulent period.
The airline's main fleet consists of 123 aircraft, including 61 SAAB 340s and seven Boeing 737-800s on lease.
Since the pandemic, Rex has had difficulty achieving profitability, posting a $3.2 million net loss for the first half of the 2023/24 fiscal year as of February.
On Friday, Rex's stock was last seen trading at 56.5 cents before a trading halt, a drop from around 79 cents just a month prior.
In related news, Bonza Airlines entered voluntary administration on Tuesday.
As a result, the airline suspended its operations, leaving passengers stranded. For more details on this development, click here.
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