Government acquires $50M Rex Airlines debt to maintain regional services

The Australian government has stepped in to support the struggling regional airline Rex by acquiring $50 million of its debt, ensuring continued service to rural and remote communities. This move follows an earlier $80 million loan aimed at keeping the airline operational and safeguarding employee entitlements amid its administration due to approximately $500 million in debts. Transport Minister Catherine King and Finance Minister Katy Gallagher emphasized that this action is vital for maintaining access to essential services in regional areas. The Transport Workers Union has expressed the need for a long-term solution to protect aviation jobs and called for government equity stakes in such bailouts. Additionally, Rex is facing legal scrutiny over alleged governance failures, as the corporate regulator seeks to disqualify several directors for failing to disclose financial shortfalls. The government’s support has garnered bipartisan backing, highlighting the critical role of Rex in regional connectivity and economic stability.