Government taking Rex money troubles ‘very seriously’: transport minister
The Albanese government is facing calls to act as the future of “incredibly important airline” Rex, which has gone into a trading halt, hangs in the balance.
Transport Minister Catherine King said the government was taking “very seriously” news the regional carrier has stopped trading on Australia’s stock exchange.
The minister told Sunrise on Tuesday there “is a range of reasons why trading halts are put on companies”, adding she was seeking more information.
“It’s an incredibly important airline, and in many cases, the only airline going into a range of smaller country towns and are heavily reliant on it, King Island, for example,” she said.
“We are treating this very seriously and being very vigilant about what is happening and keeping an eye on the situation hour by hour.”
Prime Minister Anthony Albanese on Monday said the future of Rex was important to regional Australia.
“One thing we need to do is to make sure that we have a viable and ongoing Australian aviation industry,” he told ABC News.
Camera IconRex Airlines is in a trading halt until at least Wednesday with the government watching the situation closely. NewsWire / Gaye Gerard Credit: News Corp Australia
Rex – Regional Express Airlines – put through a request to the ASX for “an immediate trading halt” on Monday, saying it would make a “material announcement” related to a news article published over the weekend.
The trading halt is scheduled to expire at the start of trading on Wednesday.
The Australian has reported Rex was seeking help from accounting firm EY to turn around its finances following a leadership shake up earlier this year.
The move comes just months after start-up airline Bonza, which was also targeting regional destinations, went bust.
Opposition transport spokeswoman Bridget McKenzie said the Albanese government must not allow Rex to go the same way as Bonza which failed in late April.
“It is time this government pulled its head out of the sand and starts pulling on the levers to foster more competition, better reliability and more affordable airfares in Australia,” she said in a statement.
“Two aviation companies control more than 93 per cent of the domestic space and companies like Rex create more competition which means cheaper airfares across the board.”
More to come
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