THE Federal Court has granted administrators of embattled Rex Airlines until December 5 to find a buyer, with the Federal Government also extending a further $30 million to keep aircraft in the sky.
The original deadline for administrator, EY, passed on June 17, but a transaction had not been completed by that date, forcing EY to seek an extension and further funding, both of which were granted on Tuesday.
It brings the total the Albanese government has shelled out to keep the airline flying to to $160 million, with a loan of $80 million and a debt buyout to the tune of $50 million making up the previous quotient.
In an ASX release on June 17, EY insisted that serious offers for the airline were still in contention.
“Over the past few weeks, the administrators and their advisers have assessed these offers and have been able to narrow the bidder field to continue progressing negotiations with a view to achieving a successful transaction – these bidders are well-funded and see real value in the business and its future,” the statement said.
“We will now spend the coming weeks facilitating in-depth bidder engagement with the stakeholders of the business and work closely with the narrowed bidder field in the lead up to finalising and documenting a transaction … we are in a strong place when it comes to delivering the best possible commercial outcome for all creditors and to see a strong and sustainable Rex emerge from this process.”
EY’s Shane Allison confirmed the offers were still on the table.
“It’s all still very positive,” he said.
“We expect this thing to be sold and we expect it to happen well before the end of the extension that’s been granted. Definitely earlier than December.”
While it’s good news for administrators and hopeful news for Broken Hill travellers, it means there’ll be no blue sky when it comes to discount prices for the remainder of 2025.
The price of a one-way flight to Sydney from Broken Hill hovers between $349 and $648, well above the price of the standby “community fare” of $199 offered before the airline went into voluntary administration in July of 2024.
“Decisions about those kinds of offers are not for the administrators,” said Mr Allison, “but will be made by the new owners, whoever they might be.”
