ADMINISTRATORS have praised Mildura residents for continuing to travel with Rex while the airlines’ financial and fleet-maintenance woes are sorted out.
Regional routes with the airline remain in service, and Rex has transported more than 20,000 passengers on 600 flights since administrators took control last week.
Professional services firm EY Australia partner Samuel Freeman said close to 500 people had travelled to and from Mildura, and others could remain confident about Rex bookings for the coming weeks.
“A voluntary administration in its shortest possible form is usually around a five week window,” Mr Freeman said.
“In larger administrations, which this is one, it can be a slightly longer period of time and you only really look to extend beyond that five weeks where it makes sense in order to achieve a better outcome.
“There is quite a large number of parties who’ve expressed interest from a private setting into the sales process.
“That commenced formally last week, so those parties are going through the motions of getting access to all of the information they need to assess their bids.”
Regional flights have remained ongoing due to financing from private equity firm PAG Asia Capital.
A creditors’ meeting on Friday was told the airline is about $500 million in debt.
Close to 600 jobs at Rex have been axed and about 1000 more are dependent on the outcome of an asset sale and buyer search.
Mr Freeman said no changes to regional routes or introductions of new routes will be made by administrators.
“Our focus has been on ensuring the existing network continues to deliver in line with the current scheduling where possible to keep the confidence in the flying passengers,” he said.
“Questions as to any structural changes to add routes and the like is a question that will be addressed with an incoming party on the other side of an administration.”
A second creditors’ meeting, expected in coming weeks, will include a vote on whether to return the Rex companies to the existing board, place them under a deed of company arrangement or liquidate.
