Announcement Regarding Rex Express Holdings Ltd.

It has been revealed that the voluntary administrators for Regional Express Holdings Limited (Rex Holdings) plan to apply to the Federal Court of Australia for an extension of the voluntary administration period until December this year. This news follows Ernst & Young’s (EY) attempt to find a buyer for the regional airline, which has not yet succeeded.

Despite these challenges, authorities have noted that the sale process is showing progress, as the administrators have narrowed the bidding list. This extension will potentially allow additional time to secure a solution led by the market. However, the Federal Court will ultimately decide on this request.

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As mentioned in the statement released today, should the extension be approved, the Albanese Government will ensure that regional communities retain access to vital aviation services during this period. They plan to prolong the ticket guarantee on regional routes and have set aside an existing loan of up to $80 million for the administrators, which has not yet been fully utilized. If needed, further financing of up to $30 million may be made available by the Australian Government to keep regional routes operational until December.

Note: Australian officials have clarified that the government is not a bidder for Rex Holdings but is preparing contingency plans in the event that a market solution is not reached. Government support for any successful bidder will depend on factors including the provision of reasonable service levels to regional communities and maintaining good governance.

The Albanese Government remains committed to ensuring access to essential aviation services for regional and remote areas, recognizing the critical role of Rex’s network in supporting local economies.