Member for Mallee and Shadow Assistant Minister for Regional Health Dr Anne Webster says Rex Airlines should be treated as an essential service for regional Australia, not merely ‘pretty important’ as described by Transport Minister Catherine King.

Rex entered voluntary administration yesterday, appointing Ernst & Young as administrators. The regional airline that flies 2.5 million Australians per annum to 56 destinations – including Mildura – grounded its 737s that flew between capital city routes yesterday. The airline retains its regional flights (using lower-maintenance Saab 340s) for now, such as Mildura to Melbourne. A Rex statement published last night indicated the airline was exploring Virgin Airlines selling Rex regional flights and extending Virgin frequent flyer benefits to Rex customers.

“Rex’s woes are a travesty considering their cries for help against the alleged anti-competitive behaviour of Qantas during the pandemic,” Dr Webster said.

“The Albanese Labor Government must guarantee that regional Australians will not be worse off through Rex’s administration. Rex provides an essential service, delivering milk and bread to remote communities. A third of Rex’s work ensures that regional Australians can access specialists in capital cities, and indeed, flies medical services into regions almost every single day.  Rex is also a partner with Air Victoria and Air Ambulance.  In summary, Rex is an essential service and guarantees health services to regional Australians – it cannot be allowed to close.

According to reports, unions have called on the federal government to step in and stabilise the airline, which employs 2,000 staff.

“The Coalition made recommendations to Government over six months ago through a Senate inquiry about making our aviation sector more competitive and sustainable, including powers to break up Qantas. They’ve refused to adopt any of them and now we look like having a second airline in trouble, in the two years that Anthony Albanese government has been in charge of the aviation regulation space,” Dr Webster said.

Rex bought the 737s from Virgin Airlines when it ceased operating during the pandemic, competing against Qantas in the Sydney-Melbourne-Brisbane triangle. Qantas retaliated by returning to regional routes it had abandoned and competing aggressively with Rex. The Harris Review criticised the Sydney slot system for rewarding the two operators controlling 93 per cent of the market and shuts out competition. The Harris reforms proposed over 2 years ago were not adopted by the Albanese Labor government.

Yesterday, Rex reportedly indicated customers can re-book their cancelled capital city flights with the re-established Virgin Airlines at no extra cost. According to reports, on Wednesday morning Qantas gave a similar undertaking where capacity permitted.