UPDATE: Rex Airlines has reportedly found a buyer, but the embattled airline’s debts could leave Far South Coast councils facing a loss of around $200,000. This urgent development comes as the airline’s administrators announced the sale to US company Air T on October 3, 2023, more than 15 months after Rex collapsed into administration.
The sale still requires approval from creditors, with fears that many, including small players, may not receive payment. The Eurobodalla Shire Council confirmed it is owed $55,000 and plans to attend the upcoming creditors meeting, although officials acknowledge the likelihood of recovering these funds is slim. The Bega Valley Shire Council faces a larger debt, estimated at $144,000, primarily for Rex’s operations at Merimbula Airport.
A spokesperson for Eurobodalla Council stated, “From council’s point of view, the priority is that flights to Moruya continue.” They emphasized the importance of establishing a good relationship with the new owners, expressing concern that as a smaller player on a regional route, their interests may be deprioritized.
Throughout Rex’s administration, Eurobodalla has advocated to both the federal and state governments to maintain the vital Moruya service for the community. The spokesperson noted, “Statements from state and federal representatives indicate that messaging from regional communities has been heard, but the risk remains.”
Federal Minister for Regional Development and Local Government Kristy McBain reiterated the importance of Rex Airlines for regional connectivity. “I actually flew with Rex Airlines yesterday, and it’s always a great service,” she stated. “The government has been working hard to ensure Rex continues as a service provider to regional Australia.”
While the announcement of a buyer is promising, McBain added, “Private companies will make their own commercial decisions. But we’ve made it clear that regional connections are incredibly important to Australians, and we want to see those services to places like Merimbula continue.”
As this situation develops, stakeholders are watching closely to see how the transition will impact regional air services and the communities that rely on them. The creditors’ meeting will be critical in determining the fate of the owed funds and the continuity of operations.
Stay tuned for further updates on this developing story as we monitor the outcome of the sale and its implications for the Far South Coast communities.
