ASX Suspends Rex Airlines Shares Amid Turnaround Efforts

On Monday, the Australian Securities Exchange (ASX) suspended trading of Rex Airlines shares following the airline's request for the move, which was linked to a report in The Australian regarding the appointment of turnaround experts from Deloitte. This development comes as the airline faces significant challenges in the competitive aviation sector, prompting Prime Minister Anthony Albanese to emphasize the importance of maintaining a viable Australian aviation industry. He noted that Rex serves as a crucial link for several communities across the nation. Albanese's comments were made during an interview with ABC News, where he acknowledged the frequent troubles faced by airlines in the current global market. He met with Transport Minister Catherine King to discuss the situation further, highlighting the need for more information from Rex. Meanwhile, Opposition transport spokeswoman Bridget McKenzie criticized the government for its inaction on aviation reforms, arguing that the lack of competition in the sector is detrimental to consumers. She called for measures to enhance competition and reduce airfares, pointing out that two companies dominate over 93% of the domestic market. Rex Airlines has been grappling with various operational challenges, including allegations of anti-competitive behavior from Qantas and difficulties in securing peak-time slots at Sydney airport. The airline reported a loss of $3.2 million for the first half of the 2023-24 financial year, a slight improvement from the previous year's $16.5 million loss, but still indicative of ongoing financial strain. Leadership changes have also added to the turmoil, with major shareholder Lim Kim Hai ousted in June.