REX Airlines – Economy

Regional Express Holdings Limited (ACN 099 547 270) and its subsidiaries, collectively known as the Rex Group (ASX: REX), have entered voluntary administration.

The specific subsidiaries affected are listed in the attached schedule.

This decision was made as part of a strategic effort to address financial challenges and explore potential avenues for restructuring and recovery.

Ernst & Young Australia (EY Australia) has appointed Samuel Freeman, Justin Walsh, and Adam Nikitins as Joint and Several Voluntary Administrators for the Rex Group, following the decision of the company’s Boards of Directors.

These administrators will oversee the management and restructuring process, working to stabilize the business and ensure that the interests of creditors and stakeholders are appropriately managed during this period of transition.

Regional Saab 340 Services Remain Operational

At present, Regional Saab 340 flights are not impacted by the administration and will continue as scheduled. Ticket holders with prepaid reservations for regional routes will have their bookings honored.

This aspect of the operation is vital as it supports essential connectivity for many communities that rely on these services for access to medical care, education, and other critical needs.

The Rex Group has a storied history of serving regional and remote areas across Australia.

Established with a mission to provide reliable and affordable air transport to underserved regions, the company has played a crucial role in connecting rural communities with major centers, thereby supporting local economies and providing vital links to broader national and international networks.

Major Airport Flights and Fleet Status

Flights connecting major airports have been canceled, with the Rex Group’s Boeing 737 fleet now grounded.

The decision to suspend these operations is a significant one, reflecting the broader challenges faced by the airline.

The airline is directly contacting affected customers to inform them of the situation, ensuring that they receive timely updates and support.

Virgin Australia’s Rebooking Offer

Virgin Australia is offering affected Rex customers the opportunity to transfer their canceled tickets to one of 13 Virgin Australia flights at no additional cost.

Customers wishing to take advantage of this offer should contact Virgin Australia’s Guest Contact Centre at 13 67 89 or visit Virgin Australia’s website by Wednesday, 14 August 2024.

This gesture represents a significant effort by Virgin Australia to mitigate the impact on travelers and maintain continuity of service for those impacted by the Rex Group’s operational disruptions.

Virgin Australia will re-accommodate eligible customers on flights as close as possible to their original departure times.

Customers should refrain from going to the airport until they have rebooked their flights to avoid unnecessary congestion and ensure a smoother transition to their new travel arrangements.

Potential Support for Regional Customers

Rex and Virgin Australia are discussing ways to support regional travelers, including potential codeshare or interline arrangements and offering Velocity Frequent Flyer benefits to Rex’s regional passengers.

These discussions are aimed at providing continued support and benefits to travelers who are most affected by the current situation, helping to maintain their travel plans and loyalty rewards during this period of uncertainty.

The Administrators extend their gratitude to Virgin Australia for its support of affected Rex customers and regional communities during this challenging period.

The collaborative efforts between airlines and other stakeholders are crucial in addressing the immediate impacts of the administration and working towards long-term solutions.

This announcement has been authorized by the Joint and Several Voluntary Administrators of the Rex Group. The administrators will continue to provide updates as the situation develops and as new arrangements and support measures are put in place.

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