THE Australian Travel Industry Association (ATIA) has called on the Federal Government to extend financial security to travel advisors and businesses left out of pocket by the collapse of Rex.
Responding to the news announced yesterday that the government will step in and protect bookings made on Rex flights during the administration period, ATIA CEO, Dean Long, reminded policy-makers the risk is not only being carried by passengers.
“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,” Long argued.
“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,” he added.
ATIA stated that travel businesses are carrying an exposure of around $11.5 million due to Rex’s demise, with Long reiterating that advisors and agencies have been bearing the brunt of the fallout, “working tirelessly” to assist affected customers and reassure clients.
In making the announcement of its Regional Flight Booking Guarantee, Federal Transport Minister Catherine King said the move was crucial to delivering travel certainly in regional Australia across both leisure, business and vital services.
“This guarantee will assure customers and communities that they can, and should, continue booking regional flights with Rex, flights that allow them to stay connected with their family, their friends, their healthcare and other services,” King said.
Under the scheme, travellers will be guaranteed of either flying on a Rex flight or obtaining a full refund during the administration period, so long as no alternative service can be delivered and the Rex Companies are unable to provide a refund.
Rex’s administrators, EY, said the guarantee will help the carrier keep flying while it continues to undertake a recapitalisation to secure its future.
“We’re currently undertaking a process to find an investor committed to a sustainable commercial regional network,” EY als confirmed.
While many in the travel sector have welcomed the news, Transport Workers’ Union National Secretary, Michael Kaine, labelled the government a “stopgap”, calling on more protecctions foe the entitlements of Rex’s 1,200 staff.
“Hundreds of workers who lost their jobs in the blink of an eye have now been waiting two weeks for any information on how or when they’ll be able to access their owed entitlements,” Kaine said.
“For too long, aviation has been under the control of privatised airports and airlines, with workers, passengers and the community paying the price for the self-serving, profit-driven decisions of executives at the expense of a reliable, sustainable aviation industry.
“We need to see the government bailouts airlines have come to expect transformed into smart investment opportunities for the community.
Namely, the TWU has been vocal about the Federal Government purchasing equity in Rex to secure jobs and its future viability.
“An equity stake in Rex and a Safe and Secure Skies Commission to set binding standards for the industry would reset aviation these can’t come soon enough,” Kaine added.
