How Rex could become the next national carrier

The federal government could acquire Rex Airlines if a suitable private sector buyer can’t be found for the struggling airline. 

The government will be working with Rex administrators and shortlisted bidders to find a buyer committed to breathing new life into the regional carrier. 

If the plan falls through, the Albanese government will begin working on contingency plans, including preparations for a potential Commonwealth acquisition.

This will be the second time the government has stepped in to help Rex, after they vowed to take on Rex Airlines' $50 million debt in order to keep the company, that collapsed on June 30th 2024, servicing regional Australia. 

“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.”

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.

“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,” federal 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.

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