Regional airports financially affected by the July 2024 collapse of Rex can apply for a federal grant by 26 March. Photo: File.
The July 2024 collapse of Regional Express Airlines (Rex) was devastating for communities dependent on the airline’s services to provide links between the bush and the city.
And while the airline was restructured through a period of administration, shored up by Commonwealth guarantees, and emerged from receivership and sold in late 2025 to a US-based company, many regional aerodromes the airline operates from weren’t paid the regular airport and terminal use fees they depend on to maintain their facilities.
Rex entered administration in July 2024 after the failure of its inter-city jet services and with $50 million in debts, and Ernst & Young Australia was appointed as administrator by the airline’s board of directors.
The 737s used on the capital city services were returned to their lessors, but the airline continued to operate its fleet of about 50 36-seat Saab 340 turboprop aircraft on its core regional routes through the administration.
The Federal Government underwrote these operations by lending Rex $80 million to maintain services, including $7.1 million paid in entitlements to former Rex staff and in ticket sale guarantees, while the administrators searched for a buyer.
In October 2025, the administrators announced they had found a buyer for REX, entering into a sale and implementation deed with Minneapolis-based Air T.
As part of the sale, the government restructured Rex’s $90 million of debt, saying it would be carried forward while a new commercial loan of $60 million was provided to the airline.
In exchange for the financing, Air T has undertaken to preserve what the government determines is essential regional aviation connectivity. The additional funding will also allow more of the Saab 340s to return to service, providing increased frequency of flights across the Rex network.
Announced in November, the Federal Government’s Regional and Remote Airport Support Program is now available for affected airports to apply for a share in $5 million of funding to help address shortfalls and the financial impact of any unpaid claims.
With many of these airports being run by local councils, the program is also designed to help reduce the likelihood of airport services suffering, and prevent any impact on residents and ratepayers.
Further, the viability of many of these airports is vital for Rex’s return to full operations over the next few years.
The support program will be administered through the Department of Industry, Science and Resources (DISR) on behalf of the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts (DITRDCSA) through a grant application process.
Grant relief amounts will be determined based on a formula that calculates these payments against the total unsecured debt owed to the grantee.
The payment formula will consider the percentage of unsecured debt the applicant is owed as a total of all applicants’ unsecured debt. This will be used to calculate the proportion of funding they receive from the total appropriation.
Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King said the government had worked hard to support regional communities through Rex’s voluntary administration process.
“Rex plays an essential role in connecting regional Australian communities and this will ensure those services can continue,” Ms King said.
“I encourage councils and airports affected to apply for this support program ensuring the maintenance of critical aviation links across our country.”
More information and an application for the grant program are available at https://business.gov.au/RRASP, with applications scheduled to close on 17 March.
