Australia acquires $50 million Rex Airlines debt to ensure regional service stability

The Australian government is stepping in to support Regional Express (REX) Airlines by acquiring A$50 million in debt from its largest creditor, PAGAC Regulus Holdings, thus becoming the airline's principal secured creditor. This move follows the airline's entry into voluntary administration amid significant financial challenges, with total liabilities reaching approximately A$500 million. The government had previously provided an AU$80 million loan to ensure the continuity of REX's regional flight operations and has committed to maintaining vital aviation services for rural communities. Transport Minister Catherine King emphasized the importance of REX's operations for local economies, highlighting the critical role of regional aviation. The government has also facilitated early access to entitlements for former employees affected by the airline's financial troubles. As REX continues to search for new investors, the federal support aims to preserve essential air connectivity in Australia.