Any news that strengthens the prospect that Regional Express (Rex) Airlines stays in the air is good news for Sunraysia and regional Australia, Member for Mallee Dr Anne Webster said this afternoon.

The Albanese Labor Government today extended its debt holdings in the airline by $50 million, acquiring PAGAC Regulus Holdings Limited’s debt to reduce the risk Rex Airlines will be wound up, by becoming its major creditor.

“Two regional airlines have gone into administration on the Albanese Labor Government’s watch, both of which – Rex and Bonza – had been serving the Sunraysia community,” Dr Webster said.

In April, Bonza Airlines entered voluntary administration 18 months after launching its first flights in Australia including the popular Mildura – Sunshine Coast route.

“Bonza had linked us to Queensland which was a huge boost for the local community, and that service is sorely missed,” Dr Webster said.

“If extending the Federal Government’s debt exposure to Rex keeps them in the air, that is good news.

Administrators EY warned the Federal Court in December that no credible bidder had at that stage emerged for Rex and that without government support, Rex’s creditors would likely wind it up “because of the unlikelihood of any proposal for the purchase of the regional business.”

Australian taxpayers are already exposed to $80 million in debt with Rex Airlines, provided in November to keep regional routes operating until June 2025.

“The Coalition stands ready to work in a bipartisan way to keep Rex serving regional Australians,” Dr Webster said.

“We need a healthy, competitive aviation sector in our highly concentrated Australian market. A third major airline like Rex is vitally important.”

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