Rex Airlines’ administrator EY has formally sought a six-month extension to the voluntary administration period, asking the Federal Court to push the deadline to 30 December as it works to finalise a shortlist of potential buyers.
The request comes amid earlier expectations that a list of credible bidders would be revealed before 30 June.
EY had originally been given until the end of this month by the Federal Government to secure interest from serious suitors, after which the Commonwealth signalled it may consider stepping in to acquire the regional carrier itself, should no viable buyer emerge.
Among the parties previously floated was Sydney-based venture capital firm Renaissance Partners, which reportedly planned to revive the Trans Australian Airlines brand as part of its bid to acquire Rex.
Its proposal included relocating the airline’s headquarters from Sydney to Canberra, maintaining the existing fleet of Saab 340s for a further decade, and eventually replacing them with electric aircraft. Renaissance also proposed asking creditors to accept shares in lieu of repayment for the first three years.
However, subsequent reporting has suggested EY has already ruled out Renaissance’s proposal, casting doubt on the viability of the plan.
Other interested parties include Anchorage Capital Partners and WA-based regional carrier Nexus Airlines, both of whom are understood to remain in contention as EY continues negotiations with a narrowed field of bidders.
In response to the latest developments, Federal Transport Minister Catherine King reaffirmed the government’s support for maintaining regional connectivity.
“The existing loan of up to $80 million provided to the administrators – which is yet to be fully expended – would remain available to ensure the airline can continue to operate,” she said.
Minister King also announced a further $30 million in contingency funding to preserve air services during any extended administration period, pending court approval.
She added that further financial backing may be offered to the successful bidder, provided they commit to delivering reliable and affordable air services to regional and remote communities.
“The Federal Government is not a bidder in the sale process, but is undertaking necessary work on contingencies should a market-led solution not be achieved,” she noted.
Rex, a vital operator for many of Australia’s remote communities, remains under close scrutiny as its future hangs in the balance.
