ATIA urges further support for tourism sector impacted by Rex Airlines voluntary administration

While the Australian Travel Industry Association (ATIA) welcomes the Federal Government’s decision to guarantee all bookings for Rex Airlines as the airline continues its regional operations under voluntary administration, the Association is also urging Government to extend its support to the wider tourism ecosystem which is also significantly impacted by Rex’s situation.

The Federal Government will guarantee all regional flight bookings for customers of Rex during its administration process over the next month.

Administrators were appointed to oversee Rex after the airline collapsed in late July, resulting in about 600 job losses.

Currently, travel businesses are carrying an exposure of $11.5 million due to Rex’s administration. These advisors and agencies have been at the forefront, working tirelessly to assist affected customers and deal with traveller uncertainty while absorbing the financial strain caused by the airline’s operational challenges.

ATIA Chief Executive Dean Long notes “While the guarantee for Rex bookings is a vital measure, it is equally important to recognise the burden being shouldered by travel advisors across Australia. These professionals have not only faced substantial financial exposure but have also taken on an increased workload, ensuring that travelling Australians receive the support they need during this difficult time.

“We call on the Federal Government to provide financial assistance to travel advisors and businesses who are also caught up in the Rex situation and who play such a vital role in supporting Australian travellers, corporate and leisure. Extending this support is not just about fairness; it’s about maintaining the resilience and integrity of Australia’s travel sector. We look forward to further discussions with the Government to secure this necessary support.”

Federal Transport Minister Catherine King said the regional flight guarantee would provide certainty for Rex's regional customers.

"This will give customers confidence to continue booking regional flights with Rex – flights that allow them stay connected to family, friends, healthcare and other services – while also helping to maintain regional aviation in Australia," she said.

The guarantee means that if Rex customers have their flights cancelled, they will be entitled to receive a full refund.

Administrators for Rex began a sales process for the airline last Friday.