Receivers attempting to find a buyer for collapsed Australian regional airline Rex have been given more time and money.
The Commonwealth government has allocated an extra AU$30m to keep the carrier flying essential routes to the end of the year and allowed the administrators until then to sell the business.
A report on the Australian Capital Brief website states that total government financing for the airline amounts to $160 million. It also says that so far the Albanese government has provided an $80 million loan and bought $50 million worth of debt from creditor PAG Capital.
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Transport Minister Catherine King is quoted as saying that the sale process is “progressing positively” and that administrators have “narrowed the bidding field”.
Rex (REgional eXpress) was formed in 2002 with the merger of Hazelton Airlines and Kendell Airlines. It acquired Air Link, another regional operator, in 2005.
However, the airline struggled to pay its bills following the introduction of B737 jet aircraft in 2023. It went into voluntary administration in July 2024.
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