There’s been a mixed reaction in the Western Plains to the Albanese Government investment in Rex Airlines.

The Government announced yesterday it would provide a lifeline to the struggling airline, by acquiring $50 million of debt from Rex’s largest creditor, PAGAC Regulus Holdings Limited (PAG).

It’s a move that means the Government will become the principal secured creditor and will seek to become a voting member of the Committee of Inspection.  

Whilst the accelerated initial sale process undertaken by the Administrators in mid-2024 did not find a suitable buyer for the airlines’ regional operations, the Government continues to work closely with the Administrators through the extended convening period. 

The Government said the purchase clarifies its ongoing commitment to maintaining access to aviation services for regional and remote communities, and recognises the critical role of the Rex network to local economies. 

Rex does not currently have active routes in the Western Plains coverage area, but provides linkages across Western NSW through Dubbo.

The $50 million debt purchase adds to a federal government commercial loan of up to $80 million to the Administrators to keep Rex’s regional routes operating.

Farmers welcome air service investment

The state’s main farm lobby group was quick to praise the investment. 

NSW Farmers' Business Economics and Trade Committee Chair John Lowe said the announcement had come as a relief for many regional communities, who relied on the airline to access essential services and stay connected to family and friends. 

“Our landscape is incredibly vast and many of our farming communities are a long way from the doctor, dentist and other specialist medical professionals they need,” Mr Lowe said. 

“Staying connected to family, friends and other business is also important, and our regions need reliable air services if they are to access all of these things that are so essential to their everyday life and regional liveability.” 

Mr Lowe said the retention of multiple regional air services would also prove critical to the continued growth and success of farming communities into the future. 

“Regional NSW and its agricultural sector is moving ahead in leaps and bounds – but we can only progress so far as our transport and infrastructure allows,” he said. 

“Plane services to and from the city should be affordable, reliable and available, if we want businesses to thrive and farmers to keep growing our world-class food and fibre that feeds our country. 

“Better bridges, roads and rail will also be important to keeping these communities safe, accessible and capable of getting Aussie food from farm to fork each day.” 

Bipartisan approach needed - Coulton

Federal Member for Parkes said he was disappointed that the Coalition had not had input into the issue. “We would like to see a bipartisan approach to the retention of regional aviation services, so it is disappointing that the Shadow Ministers were not offered a briefing on this decision.

Federal Member for Parkes, Mark Coulton.

“The Coalition will be requesting a briefing to understand the details to make sure this decision is in the best interest of Australians, particularly regional Australians,” Mr Coulton said.

“Under the Labor Government, two regional airlines have gone into administration, as well as thousands of other businesses in this cost of doing business crisis.

“The Government needs continue working with Rex administrators to ensure the service can remain in the air for our regional communities. It’s critical that the regions are not cut off from the aviation services

they need and deserve,” Mr Coulton said.

The Member for Parkes acknowledged that Rex Airlines provides a vital service to regional Australia.