Government could end up owning Rex Airlines
The government had to scramble last year to ensure regional air services when Rex Airlines stopped taking bookings on July 30.
The outcome was that trying to compete with Qantas and to a lesser extent Virgin on busy capital city routes again proved to hard for a smaller airline. It is a familiar story, but regional towns and cities would have been left with no services without intervention. These routes were generally quite profitable and sustainable, so surely a buyer could be found for the Rex Regional business. But as the clock ticks, it looks increasingly likely that the Government will have to reluctantly take over the airline. The PM Anthony Albanese confirmed this earlier in the week. The Opposition however is suspicious that the TWU maybe behind this outcome, and that other options exist from up to 6 other regional carriers.