Rex administrators have told hundreds of employees they are unlikely to receive their wages or any redundancy payouts for “months” with airlines expected to cease operations by the end of the day.
Rex Airlines was placed into voluntary administration on late on Tuesday night after it entered a trading halt on the Australian Securities Exchange on Monday.
In a recording of the meeting sent to the ABC, administrators told Rex Airlines employees, the entity which operates the domestic routes between capital cities – that the business is in a “very perilous financial position and has access to almost no funds”.
“The business, to be very frank, is simply not viable, and administrators, after working very hard, have formed the view that [Rex Airlines] is not in a position to pay the wages of its employees moving forward,” administrator Justin Walsh told the meeting.
“Put simply, I guess the company is unable to meet the costs that it will need to incur to keep operating,” he told staff.
“With the business not operating and unlikely, almost certainly, not able to…
