If a suitable buyer cannot be found for Rex, the federal government will consider acquiring the embattled regional carrier.
But it is determined to exhaust all other options first.
The federal government says it will work with Rex administrators and shortlisted bidders to find a buyer committed to providing an ongoing and reasonable level of service to the regions, value for money and good governance.
If that falls through, the government will begin working on contingency plans – including preparations for a potential Commonwealth acquisition.
“Regional Australians deserve access to quality and crucial regional aviation services,” Prime Minister Anthony Albanese said.
“That’s why we’re taking steps to ensure the best possible deal for the sale of Rex.”
This will be the second attempt to sell Rex after it fell into voluntary administration in mid-2024.
Questions were raised over the government’s role in Rex’s future after it acquired $50 million of debt from Rex’s largest creditor to ensure the airline could continue operations and loaned up to $80 million so the carrier could run regional routes until the end of June.
Should Rex be nationalised, it would be the first time a federal government has owned an airline in three decades after Qantas was privatised in 1995.
The federal transport minister said it was about making sure people in the regions don’t miss out.
“When markets fail or struggle to deliver for regional communities the government has a role to ensure people do not miss out on opportunities, education and critical connections,” Transport Minister Catherine King said.
“We are recognising that today and stepping in to keep these routes in the air.”
The government has also guaranteed Rex’s regional flight slots at Sydney Airport until October 2026.
It also revealed it will spend $12 million to upgrade regional airports across NSW.
This includes a $3.8 million investment in Merimbula Airport’s runway extension, $5 million for runway upgrades at Albury Airport and other commitments at Mudgee, Griffith, and Moree airports.
This post was originally published on Michael West.