Australian regional airline Rex's EY administrators begin sale process

Australia's Regional Express Holdings (Rex) on Thursday said its voluntary administrators from Ernst & Young (EY) have begun a sale and recapitalisation process for the collapsed regional airline. Rex went into voluntary administration in July 2024, resulting in hundreds of job losses and the suspension of its Boeing 737 flights between Australia’s major cities. However, the airline continues to serve rural areas. It currently owes A$500m ($316.85m) to 4,800 creditors after struggling to compete with Qantas and Virgin Australia, which together dominate about 98% of the domestic market. Last week, the federal government suggested that if Rex fails to secure a successful sale, the Commonwealth may step in to acquire the airline. The government had in January said it would buy A$50m of debt from the company's largest creditor, Asian private equity house PAG Asia Capital, in a bid to have more control during the voluntary administration process.<br/>