Anthony Albanese’s team flags supporting Rex bidders and buying collapsed regional airline if sale fails

The Albanese Government is offering support to serious bidders for regional airline Rex and has flagged taking over the collapsed carrier if the looming sale process flounders.

Less than three weeks after buying out the major secured creditor, the government has vowed to work with Rex administrators on their second attempt to sell their airline since it crashed in July.

While not outlining the nature of support to be offered to potential bidders, the government said it would talk to shortlisted bidders about the support it could provide to maximise the prospects of a successful sale.

Prime Minister Anthony Albanese said the government was working with administrators to ensure that regional services continued beyond June 2025, including what support the Commonwealth could provide.

‘Regional Australians deserve access to quality and crucial regional aviation services,” Mr Albanese said.

The Albanese Government said in a statement that it was not a bidder in the upcoming sales process and would like to see a “successful market-led outcome”.

But if the administrators could not find a buyer, the government said it would work with relevant State Governments on contingency options — including preparing for a potential Commonwealth acquisition.

Any Federal takeover would likely need the backing of the WA Government given Rex flies State-subsidised services linking Esperance, Albany, Monkey Mia and Carnarvon to Perth.

The regional carrier, which provides services using turbo prop Saab 340B turboprop, crashed after a disastrous push into services between capital cities using leased Boeing 737 jets.

After more than three years of offering services between Sydney and Melbourne, it entered the Perth market in June last year with fares as little as $149 to Melbourne and Adelaide.

The administrators promptly stopped the cash-burning capital city services and flicked the Boeing 737 leases back to Virgin Australia, which had offloaded the aircraft after its collapse in 2020.

The Federal Government provided an $80 million funding package to Rex administrators in November to keep Rex’s regional services going after failing to find a buyer for the trimmed down operation.

The package allowed for long overdue maintenance of the Saab aircraft in a bid to expand its regional offerings and make the carrier more attractive to a potential buyer.

The Federal Government set the scene for its central role in the sale process by agreeing last month to buy $50 million of debt from Rex’s major secured creditor PAG Asia Pacific, which had funded the disastrous capital city push.

Transport Minister Catherine King said regional Australians relied on important airline services.

“When markets fail or struggle to deliver for regional communities, the Government has a role to ensure people do not miss out on opportunities, education and critical connections,” Ms King said.

“We are recognising that today and stepping in to keep these routes in the air.”