Published Wed, Jul 31, 2024 · 06:31 AM
THE Australian regional airline Rex named an outside administrator on Wednesday to oversee its troubled finances and canceled all flights between major cities.
Australia’s third largest carrier said it has picked Ernst & Young Australia for help in this process called voluntary administration and would keep flying between Australia’s regional cities.
But the company said all flights between major cities – including Sydney, Perth and Melbourne – would be scrapped.
The regional airline, which started in 2002, has prioritised connecting remote areas of the country to capital cities with its 123 planes.
Like many airlines, Rex has struggled with supply chain challenges – including a global pilot shortage – for several months and reduced its routes before Wednesday’s announcement.
Virgin Australia has offered to assist Rex customers hit by flight cancellations, and the airlines are exploring the opportunity to support regional customers, the administrators said.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Prior to the announcement, Prime Minister Anthony Albanese said the government would consider possible proposals to save…