Australia’s third-largest airline has gone into voluntary administration and cancelled flights on some of its routes.
Rex Airlines specialises in flying to dozens of smaller regional towns and cities across the country – many of which are not serviced by larger rivals Qantas and Virgin Australia.
Trading in Rex shares was halted earlier this week ahead of the announcement that Ernst & Young Australia has been appointed as administrator.
It comes just months after another Australian carrier – Bonza – went out of business in a turbulent domestic market.
Founded in 2002 after the collapse of Ansett, Rex flies in and out of around 56 airports.
It has a fleet of 66 aircraft – mostly 34-seater Saab 340 planes, but also nine Boeing 737-800s.
Since 2020 it has used those larger aircraft to operate between bigger cities such as melbourne, sydney and brisbane – routes already lucrative for other carriers.
Those flights have now been cancelled, with its 737-800s grounded.
Passengers who hold bookings will not get refunds, but can change their flight to travel with Virgin Australia free of charge.
Services on regional routes using the smaller planes will continue to operate.
Speaking before the administration was announced, Australian Prime…
