ATIA seeks Federal Government support for travel ecosystem following Rex Airlines administration

The Australian Travel Industry Association (ATIA) has highlighted that following Rex Airlines entering into voluntary administration, many travel agents are currently out of pocket with significant amounts outstanding and owed by Rex Airlines. These travel professionals are now also doing all they can to support those travelling Australians impacted.

Rex Airlines’ fleet of Boeing 737 jets, which provide services between the major capital city airports, have all been grounded. However, Rex's regional services will continue to operate.

A statement posted to the Rex website late on Tuesday said Regional Express Holdings Limited and a number of its subsidiaries under the Rex Group had entered voluntary administration, with EY appointed as administrators.

It said Rex and Virgin were exploring opportunities to support regional customers, including Virgin Australia selling Rex's regional services.

The Australian Travel Industry Association (ATIA) is calling on the Federal Government to ensure that any support package for Rex Airlines includes compensation for the wider travel ecosystem.

ATIA has formally written to Federal Transport Minister Catherine King, seeking financial support for its members affected by this development, both financially and in terms of additional work supporting Australian consumers who have Rex bookings.

ATIA Chief Executive Dean Long notes “Given the current situation, we urge the Federal Government to extend any financial support beyond the airline itself to include the wider travel ecosystem, which is now picking up the pieces. Many Travel agents have been left with substantial outstanding amounts as a result of booking with Rex Airlines for clients. On top of the financial exposure is the significant increase in workload as they work to help those who have now found themselves stuck and those who have booked with Rex for future travel.

“Financial assistance is crucial to help travel businesses manage this difficult period, and we are hopeful the Federal Government will understand that. We had a very productive meeting with Transport Minister Catherine King earlier this week, and she understands how the Travel eco-system works.”

“Ensuring that those travel agents impacted are supported is essential given the circumstances, and also important for maintaining the integrity and competitiveness of the Australian travel industry. We look forward to the government’s prompt response to our call for action.

“Rex Airlines has been a lifeline for much of regional and rural Australia, ensuring these communities stay connected to the rest of the country. Rex’s entry into administration is a significant blow not just for these areas but also for the competitive landscape of Australian aviation. We remain hopeful that Rex is able to navigate this challenging period and emerge to trade again. In the meantime, your travel professional is doing everything they can to work through your options.

“ATIA remains committed to supporting its members through these challenging times and will continue to advocate for measures that safeguard the interests of the travel industry.”