A LOCAL Federal MP has backed the acquisition of $50 million of debt owed by under-administration airline Rex by the Federal Government from the airline’s largest creditor, PAGAC Regulus Holdings Limited.
Regional Express Holdings Limited, as well as a number of subsidiaries owned by the Rex Group entered voluntary administration in July last year with services between capital cities ended, though regional flights have been going ahead as scheduled.
Mallee Federal MP Anne Webster described the move as a lifeline to keep regional and remote communities served by Rex flights.
“If extending the Federal Government’s debt exposure to Rex keeps them in the air, that is good news,” she said.
“The Coalition stands ready to work in a bipartisan way to keep Rex serving regional Australians.”
Along with Qantas, Rex is one of two carriers operating flights from Mildura Airport, after Bonza Airlines entered voluntary administration in April last year and then folded.
“Bonza had linked us to Queensland, which was a huge boost for the local community, and that service is sorely missed,” Dr Webster said.
“We need a healthy, competitive aviation sector in our highly concentrated Australian market, a major airline like Rex is vitally important.”
Rex regional routes were at this stage expected to remain in operation until the convening period ends in June.
