The Federal Government’s payments cover debts incurred by regional airports during Rex’s collapse and period of administration. Photo: Rex.
The Federal Government has finalised payments totalling nearly $5 million to 34 regional airports owed money from the 2024 collapse of Regional Express Airlines (Rex).
The money has come from the government’s Regional and Remote Airport Support Program, which was announced last November to help address shortfalls and the financial impact of unpaid claims.
With many of these airports being run by local councils, the program was also designed to reduce the likelihood of airport services suffering, and to maintain the viability of the airports, which was vital for Rex’s return to full operations under its new ownership.
In July 2024, Rex collapsed, leaving many regional communities that were dependent on the airline’s services concerned, and airports out of pocket.
Rex entered administration after the failure of its inter-city jet services and with $50 million in debts, and Ernst & Young Australia was appointed as administrator by the airline’s board of directors.
The 737s used on the capital city services were returned to their lessors, but the airline continued to operate part of its fleet of 36-seat Saab 340 turboprop aircraft on its core regional routes through the administration.
While the airline was restructured through a period of administration, it was shored up by the Federal Government underwriting these operations by lending Rex $80 million to maintain services, including $7.1 million paid in entitlements to former Rex staff and in ticket sale guarantees, while the administrators searched for a buyer.
The airline emerged from receivership and was sold in late 2025 to US-based company Air-T, but many regional aerodromes the airline operates from were still owed airport and terminal use fees, which they depend on to maintain their facilities.
The Regional and Remote Airport Support Program has been administered through the Department of Industry, Science and Resources (DISR) on behalf of the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts (DITRDCSA) through a grant application process.
Grant relief amounts were determined based on a formula that calculates these payments against the total unsecured debt owed to the grantee.
The government says that, following the application process, 95 per cent of claimants were assessed as eligible and received payments covering 100 per cent of their eligible debt.
Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King said the government was committed to and had delivered the successful sale of Rex to keep regional communities connected.
“This financial support is yet another demonstration of our unwavering support for regional and remote aviation,” she said.
“We support regional aviation through word and deed, because we understand the essential nature of aviation to communities all over Australia.”
Examples of the program’s payouts include $153,411 to Griffith City Council, $129,474 to Bega Valley Shire Council, $49,780 to Eurobodalla Shire Council, $154,803 to Albury City Council, and $187,885 to Wagga Wagga City Council.
Original Article published by Andrew McLaughlin on PS News.
