In short:
Rex Airlines is currently in an ASX trading halt “pending making a material announcement”, a spokesperson says.
The prime minister says the airline is important to regional Australia and the government is seeking more information.
What’s next?
The trading halt, which has no affect on Rex flights, will remain in place until Wednesday or until the airline makes a market announcement.
Regional Australian airline Rex has suspended trading on the Australian stock market pending an upcoming announcement.
The ASX-listed company halted trade on Monday with the pause expected to remain in place until tomorrow or until Rex releases a statement to the market.
In a statement to the ABC, a spokesperson from Rex Airlines said the company was currently in an ASX trading halt “pending making a material announcement”.
“In the meantime it isn’t appropriate for us to make any further comments until such announcement is made,” the spokesperson said.
Transport Workers Union boss Michael Kaine said he had written to Rex as about 2,000 jobs were at risk.
“This is a sign that the aviation industry is broken, it’s actually in crisis,” he said.
“We’re looking forward to hearing back from REX as a matter of urgency, to try and get some more clarity on this situation.”
Government to ‘work with’ Rex
Asked whether the federal government would help keep Rex in the air, Prime Minister Anthony Albanese said it was “an important airline” and he was “very hopeful that they’ll see their way through”.
“We have sought information from the airline through [Minister for Transport] Catherine King, who came to see me about this today … we will continue to monitor what happens there,” he said.
“There are a range of communities in New South Wales, in Queensland, in South Australia and right around the country that rely upon Rex … so it’s important,” he said.
The prime minister said the airline had come through COVID and received substantial government support, “and we will remain vigilant when it comes to this airline and continue to work with them”.
“We want to see not just those jobs maintained, but we also want to see those communities continue to have access to aviation, that’s so important for their economy and for their way of life,” he said.
Concerns for remote communities
In outback Queensland, State Member for Traeger, Robbie Katter said about a dozen routes in his regional electorate would no longer exist if Rex were to fold.
The Queensland government has partnered with Rex to subsidise many remote routes, including from Mount Isa to Mornington Island.
“These communities don’t have access to any other operator … and my concern is that if Rex goes there won’t be a provider ready to jump straight in,” Mr Katter said.
In South Australia’s Eyre Peninsula region, Streaky Bay Mayor Travis Barber said he was “shocked” by the situation.
“This is pretty scary news for the peninsula,” he said.
Cr Barber said his community seven hours west of Adelaide relied heavily on the airline to fly in locum doctors, nurses and other medical professionals.
“If we can’t get doctors into Ceduna, then we don’t have doctors — so it’s a very very important cog in the way we work [as a community],” he said.
The trading halt has no affect on Rex flights.
It is the nation’s third largest carrier.
More to come.
Posted , updated
