Rex Airlines Goes Bankrupt, Flights Cancelled

Australia's third-largest airline, Rex Airlines, has entered voluntary administration, leading to the cancellation of flights on select routes. The airline, known for servicing numerous smaller regional towns and cities, has faced challenges in a competitive domestic market, particularly following the recent collapse of Bonza, another Australian carrier. While Rex has shifted to operating larger aircraft on profitable routes between major cities like Melbourne, Sydney, and Brisbane, the move has not been enough to sustain its operations. Passengers with existing bookings will not receive refunds but can transfer their flights to Virgin Australia at no additional cost. Despite the administration announcement, regional services using smaller aircraft will continue to operate, ensuring some level of connectivity for remote areas. Australian Prime Minister Anthony Albanese emphasized the importance of Rex to regional Australia, expressing a commitment to securing its future in the aviation sector, albeit with caution regarding costs. Opposition transport spokeswoman Bridget McKenzie highlighted concerns over competition in the airline industry, pointing to the dominance of Qantas and Virgin Australia. Rex's shares have plummeted by approximately 50% over the past year, reflecting the airline's struggles. Additionally, Rex holds a 50% stake in another aviation business that provides transport for workers in remote locations, further complicating its financial landscape. The recent turmoil in the aviation sector underscores the challenges faced by regional airlines, as they navigate a landscape marked by competition and financial instability.