| |||||||
Founded | 11 July 2002 (amalgamation) | ||||||
---|---|---|---|---|---|---|---|
Commenced operations | 2 August 2002 | ||||||
AOC # | CASA.AOC.0109 | ||||||
Operating bases | |||||||
Frequent-flyer program | Rex Flyer | ||||||
Fleet size | 58 [1] | ||||||
Destinations | 56 [2] | ||||||
Parent company | Regional Express Holdings | ||||||
Headquarters | Mascot, New South Wales, Australia | ||||||
Key people | Neville Howell (CEO) [3] | ||||||
Website | www |
Rex Airlines Pty Ltd is an Australian regional airline based in Mascot, New South Wales. It operates scheduled regional services using turboprop aircraft. Between 2021 and 2024, Rex also operated jet services between selected major Australian cities. In July 2024, it was placed into voluntary administration.
It is the primary subsidiary of Regional Express Holdings, itself predominantly foreign-owned by Singaporean businessman Lim Kim Hai and Hong Kong investment firm PAG. [4] Rex is Australia's second-largest regional airline by number of regional destinations, serving 45 regional destinations, behind QantasLink, who serve 55 regional destinations across Australia. [5] [6]
On the night of 30 July 2024, the airline ceased all bookings for domestic jet service routes to capital cities and fell into voluntary administration, appointing joint administrators from Ernst & Young. It came one day after Rex stopped trading on the Australian Securities Exchange (ASX), amid fears the airline could halt all operations. Rex continues to operate some regional services, which are being funded by PAG Asia [7] and Queensland government[ citation needed ], despite its administration.
In September 2024, two months after the commencement of the administration, it was revealed that no buyer is currently found, and it is likely that Rex will be broken up and sold or placed into liquidation or receivership. [8] [9] It did, however, previously get an extension from the Federal Court of Australia to further facilitate the sale process. [10]
The airline was established in 2002 when the Australiawide Airlines consortium (set up by former Ansett Australia employees) acquired Hazelton Airlines and Kendell Airlines, before merging the companies and starting operations as Rex in August 2002. [11] In 2005, Australiawide Airlines was renamed Regional Express Holdings and partially floated on the Australian Securities Exchange. [12] On 30 November 2005, Rex announced the acquisition of the Dubbo-based Air Link, another regional airline. [13]
In October 2007, Rex expanded into Queensland when it commenced operations between Brisbane and Maryborough. [14] This exacerbated an existing problem within the company of not having enough pilots to crew its flights (due to the expansion of larger airlines, especially Jetstar and Virgin Blue), [15] [16] and Rex suspended operations out of Brisbane [17] (and from Sydney to Cooma during the summer "low season" for this route to the NSW ski fields) [18] in November 2007. To provide a medium-term solution to the pilot shortage, Rex announced that it was establishing a cadet-pilot flight-training programme. [19]
In November 2015, Rex announced the resumption of services to the NSW Snowy Mountains in conjunction with Snowy Mountains Airport Corporation, with the flights resuming in March 2016. [20] In December 2015, Rex announced that it would be commencing operations in Western Australia in February the following year after being selected by the Government of Western Australia to be the operator of regulated RPT routes after a tender process. Initially operating from Perth to Albany and Esperance, in July 2018 the Western Australian operations expanded to include Carnarvon and Monkey Mia. It brought Rex's weekly flights to roughly 1,500 across 60 destinations. [21]
Starting on 6 April 2020, Rex significantly scaled back all its regional services due to the COVID-19 pandemic, continuing to only offer government-subsidised services within Queensland and Western Australia and one flight a week between all 54 regional and remote communities within its route network. Services including Adelaide to Port Augusta, Sydney to Newcastle and Sydney to Armidale were suspended. [22]
In June 2020, eyeing the demise of Tigerair Australia, Rex announced interest in expanding into the domestic airline market between Sydney, Melbourne and Brisbane. Rex leased six Boeing 737-800s previously leased by Virgin Australia to operate the new services, with the first delivered in November 2020. [23] [24] The first jet operations began on 1 March 2021 on the Melbourne to Sydney route. [25] Also in June 2020, Rex announced that it had entered into a memorandum of understanding with ATR to explore options for replacing the Saab 340 fleet with ATR 42 and ATR 72 aircraft. [26] Following the airline's launch of jet services in March 2021, Rex replaced the announced Brisbane jet services in early April with services to Adelaide and Gold Coast, with the start of services occurring between 29 March and 1 April. [27] The airline later cancelled all 737 fights and went into administration.
Company type | Public company |
---|---|
ASX: REX | |
Industry | Air travel |
Founded | 2002 |
Headquarters | Sydney, Australia |
Key people | John Sharp AM, Chairman [28] |
Products | Airlines, air cargo, air charter |
Revenue | A$353.388 million (2024) [29] |
A$1.379 million (2024) [29] | |
Website | www |
Regional Express HoldingsLimited is the parent company of a number of airline and associated companies in Australia. It is based in Mascot, New South Wales (a suburb of Sydney) and is a public listed company on the Australian Stock Exchange. Regional Express Holdings arose from the 2001 collapse of Ansett Airlines, which was the parent company of Kendell Airlines and Hazelton Airlines. A group of Singaporean investors and a collection of Australian private investors purchased the Hazelton and Kendell businesses, which were profitable entities before they were taken over by Ansett. The investors formed Australiawide Airlines, which was officially incorporated on 12 February 2002. The assets of the two airlines were purchased by Australiawide and merged to form the airline Regional Express, known as Rex. In 2005 Australiawide offered a percentage of the owners' shares (35 million out of 115 million shares, or 30.43%) to the public in a float. [30] [31] At the same time an agreement was reached with the owners of Pel-Air that Australiawide would purchase Pel-Air. [32]
As part of the public float process, Australiawide Airlines' name was changed to Regional Express Holdings. Regional Express Holdings is the owner of a number of other companies. [33] The main asset is Regional Express Pty Ltd. which is the company that operates the business of the airline Regional Express (Rex) and owns Rex Airlines Pty Limited. Rex Airlines Pty Limited was registered on the 6 July 2020 as part of Rex domestic expansion plans, responsible for issuing tickets on behalf of Regional Express Pty Limited. Another company is Air Partners Pty. Ltd., which is the company that owns National Jet Express and Pel-Air and Rex Flyer. The third subsidiary company is Rex Investment Holdings Pty. Ltd., which owns the Australian Aero Propeller Maintenance and Australian Airline Pilot Academies based in Wagga Wagga and Ballarat.
In July 2024, the company requested a trading halt. [34] [35] This sparked comparisons with Bonza, that had collapsed and later was wound up earlier that year, and calls by the Transport Workers' Union of Australia for government intervention, with Prime Minister Anthony Albanese asking for time and conditions and criticising the company's move away from regional service. [34] It later suspended ticket sales with plans to exit out of the capital city market and appointed EY as administrators. [36] Capital city flights were suspended, with an agreement reached with Virgin Australia to accommodate affected Rex customers between 30 July and 14 August 2024. [37] On 31 July, the company was placed into voluntary administration and cancelled all capital cities flights, but continued to operate regional services. [35] [38] [39] PAG has held off taking the company under receivership, with the hope that the company will be sold instead. [40] [41] The leases on three of its Boeing 737s were taken over by Virgin Australia. [42]
In August, the federal government guaranteed flights with Rex or moneyback. Administrators thanked the move as added certainty for customers during the process. However, there has been no specific dollar metric set until the event of cancellation, or say on whether further intervention might be needed to support the business or find a buyer including an outright bailout. [43] [7] This has also drawn slight criticism from unions and the federal opposition, calling it a "stopgap measure" and calling to go further as stated, including guaranteeing staff on the Fair Entitlements Guarantee - a system that was put off in the case of Bonza -, with fears also for keeping remote communities connected to transit and essential services. [7] Meanwhile, after an extended investigation into the source of a $500 million debt or possible insolvent trading, the administrators blamed a series of factors principally a pilot shortage and other supply chain issues, ex-staff entitlements and half-empty seats for the collapse. [43] The company is indebted to a total of 4,800 creditors including ex-staff, airports and funders. [43] [44] [7] It is estimated that the administration of Rex has resulted in about 600 job losses within the company [43] and counting, [44] with the assurance that business is not affected and that the staff are not being stripped right down but in fact were returned to original levels. [44]
On 23 August, the company was granted an extension of the administration by the Federal Court of Australia to 25 November, allowing more time to process and bind expressions of interest but does not intend to use all of it to find a buyer. [10] It was later revealed that there are reports of no real interest in buying the company and that the holding company may be either broken up and sold, placed into liquidation, [9] [8] and/or moved on to receivership. [41] On 8 October, it was revealed a YouGov poll suggested high popular demand for further government intervention such as part-nationalisation of the company and setting up a separate industry commission, such as a "Safe & Secure Skies Commission", to reduce fierce monopoly and fair work and consumer affairs violations plaguing the industry. [45]
In October 2024, Pel-Air was sold to the Toll Group. [46] [47] Wagga Wagga flight school, Australian Airline Pilot Academy was also put up for sale for $17 million. [48]
Rex has been criticised for its close political and financial relationship with the Coalition, particularly the centre-right to right-wing National Party of Australia. John Sharp, Rex's current deputy chairman, was a National Party member of the Australian Parliament from 1984 to 1998.
Rex provides National Party members with flight tickets free of charge during election campaigns, and is a major donor to the political party. [49]
During the early stages of the COVID-19 pandemic in 2020, it was revealed that Rex received more taxpayer funds than Qantas and Virgin Australia combined, [50] despite the Australian flag-carrier being more than six times larger than Rex by number of aircraft and employees. In response to this revelation, the then-Labor opposition accused the then-Coalition Government of "supporting their National Party mates", a reference to the close friendship between John Sharp and then-deputy Prime Minister and Transport Minister Michael McCormack, who authorised the handout. [51] [52]
In 2022, the year the Coalition lost government federally, Rex named a newly delivered 737-800 aircraft after McCormack at the airline's 20th anniversary celebrations. [53]
In September 2024, it was revealed that USA-based firm Jet Midwest Group filed a US$ 7,200,000 (AU$10,737,760) lawsuit alleging Rex unlawfully dismantled parts and scrapped the airframes of 4 SAAB 340 aircraft in the firm's possession when they were stored at an aircraft boneyard in Kingman Airport, Arizona. [54] [55] The lawsuit, filed by the firm in the Supreme Court of New South Wales, alleges Rex instructed a third party to remove these parts, which included engines and propellers, as well as to scrap the airframes, and profited from the sale of these components. [55]
The litigant was soon deterred from proceeding by the court, which agreed with the administrators citing that it would be a huge "costly" logistical distraction from the company. Jet Midwest backed out agreeing that there is no "urgency" in the claim seeing it even took 4 years to take action. [56]
Rex Airlines initially offered regional flights from various bases across Australia using turboprop aircraft, but in March 2021 began flying between its bases using jet aircraft with flights between Melbourne and Sydney. Prior to its voluntary administration in July 2024, its domestic flights were between Melbourne, Sydney, Brisbane, Canberra, Gold Coast, Adelaide and Hobart. [57]
Rex Airlines operates to the following 45 destinations [58] as of August 2023 [update] :
As of July 2024 [update] , Rex Airlines operates the following aircraft: [64]
Aircraft | In service | Orders | Passengers | Notes | ||
---|---|---|---|---|---|---|
J | Y | Total | ||||
Saab 340 | 57 | — | — | 30 | 30 | 23 aircraft parked [65] |
33 | 33 | |||||
34 | 34 | |||||
36 | 36 | |||||
Total | 57 | — | ||||
Rex Airlines has previously operated the following aircraft:[ citation needed ]
Aircraft | Total | Introduced | Retired | Notes |
---|---|---|---|---|
Boeing 737-800 | 10 | 2020 [66] | 2024 | Grounded due to administration. |
Fairchild Metro 23 | 7 | 2002 | 2006 | Inherited from Kendell Airlines. |
Rex operates the world's largest fleet of Saab 340 aircraft. [67] The delivery of 25 ex-American Eagle Airlines Saab 340B Plus aircraft started in mid-2007 and enabled the expansion of services and the phase-out of the airline's Saab 340As, and some older B models. The 340B Plus has a quieter and more comfortable interior.
In July 2008 the company announced that all of its 340As would be phased out; however one rejoined the fleet in July 2015 after a 7-year stint with Rex's subsidiary airline Pel-Air and remains in service as of January 2020. [68] [69] [70]
The airline also previously operated some Fairchild Metro 23 aircraft seating 19 passengers, but the aircraft were later phased out.
The airline operated an all-Saab 340 fleet with three variants of the type until December of 2020, [70] when the airline commenced jet aircraft operations following the delivery of its first Boeing 737-800.
In November 2007, Regional Express Airlines and Mangalore Airport Pty Limited created a joint venture pilot academy called the Civil Aviation Training Academy, based at Mangalore Airport in Victoria. [81] In April 2008, Regional Express Airlines fully acquired the Civil Aviation Training Academy and it was renamed to Australian Airline Pilot Academy. [82]
On 18 February 2009, Regional Express Airlines announced that the Australian Airline Pilot Academy (AAPA) would be relocated from Mangalore Airport to Wagga Wagga Airport in partnership with the City of Wagga Wagga starting in April 2009. [83] [84]
On 27 May 2010, the AAPA campus at Wagga Wagga Airport was officially opened by Federal Minister for Infrastructure, Transport, Regional Development and Local Government, Anthony Albanese. [85]
On 19 November 2019, AAPA purchased ST Aerospace Academy Australia at Ballarat Airport in Victoria, taking it over as a second campus. [86]
In addition to training aircraft, the flight school has five flight simulators, including a full motion Saab 340 simulator. There is also one retired Saab 340B at Wagga Wagga used as a training aid.
On 3 November 2024, it was confirmed that AAPA was up for sale after Rex Airlines went into administration in July 2024. It was reported that there was interest from over 40 parties based both domestically and internationally. [87]
As of December 2021 [update] , the Australian Airline Pilot Academy operates the following aircraft: [88]
Aircraft | In service | Location |
---|---|---|
Cessna 152 | 1 | Ballarat |
Cessna 172S | 14 | Ballarat |
Piper PA-28 Warrior | 16 | Wagga Wagga |
Piper PA-44 Seminole | 10 | Ballarat and Wagga Wagga |
Beechcraft King Air C90GTi | 1 | Ballarat |
Beechcraft Super King Air B200 | 1 | Wagga Wagga |
Mesaba Aviation, Inc. was a regional airline in the United States that operated from 1944 until it merged with Pinnacle Airlines in 2012 to form Endeavor Air. It was based in Eagan, Minnesota From 2010 to 2012, the airline was a wholly owned subsidiary of Pinnacle Airlines Corp. with code sharing flights operated as Delta Connection for Delta Air Lines and US Airways Express for US Airways. Previously, the airline operated code sharing service as Northwest Airlink and Northwest Jetlink on behalf of Northwest Airlines which subsequently merged with Delta. Mesaba also previously operated connecting flight services in association with Republic Airlines before this air carrier was subsequently merged into Northwest. Mesaba Airlines effectively ceased operations on January 4, 2012, when all aircraft and personnel were transitioned to the Pinnacle Airlines operating certificate. Mesaba's operating certificate was surrendered on July 31, 2012.
Envoy Air is an American regional airline headquartered in Irving, Texas in the Dallas–Fort Worth metroplex. It is a wholly owned subsidiary of the American Airlines Group and it is paid by fellow group member American Airlines to staff, operate and maintain aircraft used on American Eagle flights that are scheduled, marketed and sold by American Airlines.
The Saab 340 is a Swedish twin-engine turboprop aircraft designed and initially produced by Saab AB and Fairchild Aircraft. It is designed to seat 30-36 passengers and, as of July 2018, there were 240 operational aircraft used by 34 different operators.
Loganair is a Scottish regional airline headquartered at Glasgow Airport in Paisley, Renfrewshire, Scotland. The airline primarily operates domestic flights within the United Kingdom. It is the largest regional airline in Scotland by passenger numbers and fleet size.
Kendell Airlines was a regional airline of Australia, in the 1990s the largest in the country. It served major regional centres in New South Wales, Victoria, South Australia and Tasmania from Melbourne, Adelaide, and Sydney. Many of its services were in co-operation with its parent company Ansett Australia from the 1990s.
Canberra Airport is an international airport situated in the district of Majura, Australian Capital Territory. It serves Australia's capital city, Canberra, as well as the nearby city of Queanbeyan and regional areas of the Australian Capital Territory and southeastern New South Wales. Located approximately 8 km (5.0 mi) from the city centre, within the North Canberra district, it is the ninth-busiest airport in Australia.
MacAir Airlines Pty Ltd was a regional airline based in Townsville, Queensland, Australia. It operated scheduled passenger services throughout Queensland from major regional locations, as well as regular and ad hoc charters for the minerals industry in Queensland. Its main operations base was Townsville Airport, with hubs at Cairns, Brisbane and Mount Isa.
National Jet Express is an Australian charter airline and aviation services provider with its headquarters in Perth, Western Australia.
QantasLink is a full-service, regional brand of Australian flag carrier Qantas and is an affiliate member of the Oneworld airline alliance. As of 2024, QantasLink provides over 2,000 flights each week to 65 metropolitan, regional and remote destinations across Australia, as well as short-haul international services to Singapore, the Solomon Islands, New Caledonia and East Timor. Flights are operated by the Qantas owned subsidiaries of Eastern Australia Airlines, National Jet Systems, Network Aviation and Sunstate Airlines, with E190s wet-leased from Alliance Airlines.
Wagga Wagga Airport is a regional airport serving Wagga Wagga in New South Wales, Australia. The airport is located in the suburb of Forest Hill, 11 kilometres (6.8 mi) south-east of the city centre, on land leased from the Department of Defence. It shares runways and some aviation facilities with the adjacent RAAF Base Wagga, which hosts ground training establishments and supporting military air traffic. Rex Airlines maintain a strong presence with its main engineering and maintenance base for its Saab 340 aircraft. The airline also conducts an in-house program to train cadet pilots through a campus of the Australian Airline Pilot Academy at the airport. In the 2020-21 financial year the airport recorded 71,862 passengers which made it the 36th busiest airport in Australia.
Mangalore Airport is located 2 nautical miles west of Avenel, Victoria, Australia. The airport is about 2 hours north of Melbourne by road, and is home to Inbound Aviation
Hazelton Air Services Pty Limited, trading as Hazelton Airlines, was an Australian regional airline which operated until 2001. It was established as an independent airline but by the end of its existence had become a subsidiary of Ansett Australia.
Crossair Flight 498 was a scheduled commuter flight from Zürich, Switzerland, to Dresden, Germany. On 10 January 2000, the Saab 340B operating the flight crashed two minutes after takeoff in the Swiss municipality of Niederhasli on 10 January 2000, killing all 10 passengers and crew. It was one of two fatal crashes for Crossair during its existence; the other was Crossair Flight 3597 which crashed less than 2 years later during approach to Zurich.
Pel-Air Aviation Pty Ltd is an airline based in Mascot, Sydney, Australia.
Bathurst Airport is an airport serving Bathurst, New South Wales, Australia.
Shellharbour Airport, formerly Illawarra Regional Airport, also referred as Albion Park Aerodrome or Wollongong Airport, is an airport located in Albion Park Rail, New South Wales, Australia.
National Jet Systems, formerly Cobham Aviation Services Australia - Airline Services, is an Australian regional airline based at Adelaide Airport, operating regular scheduled services as part of the QantasLink brand.
American Eagle is a brand name for the regional branch of American Airlines, under which six individual regional airlines operate short- and medium-haul feeder flights. Three of these airlines, Envoy Air, Piedmont Airlines, and PSA Airlines, are wholly owned subsidiaries of the American Airlines Group. American Eagle's largest hub is Charlotte Douglas International's Concourse E, which operates over 340 flights per day, making it the largest regional jet operation in the world.
Vee H Aviation Pty Ltd, operating as Link Airways, formerly known as Fly Corporate, is an Australian regional airline based at Brisbane Airport, Queensland. The airline operates scheduled regional passenger services in Queensland, New South Wales, Victoria, Tasmania and the Australian Capital Territory. Link Airways operates a fleet of Saab 340B Plus and Fairchild Metro 23 turboprop aircraft.
Aviair Pty Ltd, previously known as Slingair Heliwork, is an airline and air charter company based in Kununurra, Western Australia. It is a wholly owned subsidiary of HM Consolidated Pty Ltd. It operates air charter services and regular passenger services. Its main bases are Kununurra Airport, Broome International Airport and Karratha Airport.
{{cite news}}
: CS1 maint: numeric names: authors list (link)Media related to Rex Airlines at Wikimedia Commons