Rex future still up in the air

The embattled airline is now being acquired by Air T, but little is known of the American business' plans for the carrier, writes ADAM BISHOP.

There are still “significant questions” that need to be answered regarding the longer-term details of Rex’s recent acquisition by Air T, Transport Workers Union (TWU) National Secretary Michael Kaine has warned.

“[There is] little known about Air T’s plan for Rex’s critical routes… and around the continuation of services long-term,” Kaine said.

“The Federal Government must ensure it extracts further commitments from Air T on routes and services,” he added.

While commending the Federal Government on keeping Rex going during the administration period, Kaine claimed “regional Australia has been left behind too frequently” in aviation, and that
travellers and residents in remote regions now need “certainty” about the future for Rex.

“Air T’s long-term plan for Rex must involve growing critical services and investing in the airline, which crucially means good jobs for workers,” he said.

The TWU also called for a Safe and Secure Skies Commission to ensure that the “boom-andbust cycle stops” – especially as consumer trust remains eroded after the collapse of both Rex and Bonza in quick succession.

The TWU has championed the Commission as a way to give a louder voice for aviation workers, passengers and regional Australia in decision-making and oversight.

Meanwhile, Federal Transport Minister Catherine King this morning assured the travelling public that while Rex will soon be foreign-owned, it will remain an Australian company subject to Australian employment law.

“I’m pleased to hear that [Air T] intends to keep all of the workers and to keep the management team in place,” she said.

King also clarified that the formal sign off on the purchase will only happen after a second creditors’ meeting.

Meanwhile, Rex’s loyalty program has also been placed in voluntary administration this week, suspending travellers’ abilities to earn frequent flyer points.

 

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