Australia Considers State Acquisition of Regional Airline Rex

The Australian government is considering acquiring the struggling regional airline Rex if a suitable private buyer cannot be found, marking a potential return to government ownership of an airline for the first time in thirty years. Prime Minister Anthony Albanese emphasized the importance of maintaining access to aviation services for regional Australians, particularly as Rex continues to operate essential routes despite its financial troubles. The airline entered voluntary administration last year, and although it has received government-backed guarantees to sustain operations, it owes approximately A$500 million to creditors. The government is working closely with administrators and potential bidders to secure a buyer committed to maintaining affordable services for rural communities. If private negotiations fail, the government plans to prepare for a Commonwealth acquisition to ensure regional connectivity. In the meantime, the government has guaranteed Rex's regional flight slots at Sydney Airport and is exploring ways to support the airline's fleet renewal.