All Rex flights between capital cities have been grounded and the airline has entered voluntary administration just hours after the Albanese government suggested it would intervene to ensure the nation’s third-largest carrier didn’t collapse.
Late on Tuesday, EY – formerly known as Ernst & Young – announced it had been appointed as administrators of the company, and that the airline’s Boeing 737 operations between capital cities such as sydney, melbourne and brisbane had been grounded, with Virgin Australia stepping in to offer impacted passengers rebooking “free of charge”.
Rex’s regional operations with its Saab 340 turboprop planes remained unaffected by the administration and would continue to operate.
The administrators said Rex and Virgin Australia were also exploring opportunities to support regional customers, including by having Virgin Australia sell Rex’s regional services through codeshare or interline arrangements, and making Velocity Frequent Flyer benefits available to Rex’s regional customers.
Earlier on Tuesday, the federal transport minister, Catherine King, said her department had held “significant discussions” with Rex’s leadership after the airline on Monday requested a trading halt…
