Albanese Government Steps Up to Keep Regional Flights in the Air
The Albanese Government has reaffirmed its commitment to regional Australia, announcing it will work with administrators of Regional Express Holdings (Rex) to ensure crucial aviation services continue beyond 30 June 2025.
Prime Minister Anthony Albanese said the government was determined to keep regional communities connected.
“Regional Australians deserve access to quality and crucial regional aviation services,” he said.
“We are working collaboratively with the administrators of Rex to ensure these services continue beyond June 2025, including looking at what support the Commonwealth can provide.”
As part of a competitive sale process, the government will engage with shortlisted bidders to explore possible support options, with any assistance contingent on continued service to regional and remote communities, taxpayer value, and strong governance.
Finance Minister Katy Gallagher said ensuring the sale of Rex delivers the best outcome for regional travellers was a priority.
“The Albanese Government believes regional and remote communities deserve reliable, affordable, and accessible air travel,” she said.
“That’s why we’re taking steps to ensure the best possible deal for the sale of Rex.”
While the government is not a bidder in the sale, it has left the door open to a potential Commonwealth acquisition if a buyer cannot be found.
In the meantime, it has taken further steps to safeguard Rex’s regional operations, including waiving the “use it or lose it” rule for the airline’s flight slots at Sydney Airport until October 2026.
This comes in addition to an $80 million loan to keep Rex’s regional routes running until mid-2025 and the acquisition of $50 million in debt from the airline’s largest creditor, PAGAC Regulus Holdings Limited, earlier this year.
Transport Minister Catherine King said these actions reinforced the government’s commitment to regional connectivity.
“Regional Australians rely on these important services, and the Albanese Government is making sure communities outside capital cities aren’t shortchanged,” she said.
“When markets fail or struggle to deliver for regional communities, the Government has a role to ensure people do not miss out on opportunities, education, and critical connections.”
The government likened its approach to regional aviation to its commitment to telecommunications, with Prime Minister Albanese stressing that country towns deserve the same level of services and connectivity as major cities.
“Regional Australians can be assured that our Government will continue to fight to ensure these regional airfares remain available.”
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