Rex may become state-owned carrier after buyer fails to emerge

The Albanese government is preparing for the possibility it may have to acquire the embattled regional airline Rex and operate it as a state-owned carrier, as efforts to find a new buyer to rescue the airline remain fruitless. Administrators were appointed to determine Rex’s future in July, when the airline abruptly ended its Boeing 737 jet operations between metropolitan cities. While Rex’s core regional operations have continued in the months since – in part through the government guaranteeing routes connecting isolated communities would continue to function with a loan of up to $80m – the future of the airline has become increasingly unclear, with the administration period extended to provide more time for a potential buyer to emerge. The search for a new owner has come up empty-handed so far, with the airline’s future beyond the extended June 2025 administration period uncertain before the government’s announcement of continued support on Wednesday. The administrators Ernst & Young revealed the carrier had been weighed down with $500m in debt, and listed Rex’s flight academy in Wagga Wagga for sale, as well as other assets including the charter subsidiary Pel-Air and flight simulators.<br/>