Government Provides $80 Million Lifeline to Struggling Regional Airline Rex

The federal Labor government will prop up the struggling Rex Airlines to the tune of $80 million (US$52 million) in an effort to keep the regional icon flying. In a statement on Nov. 12, Transport Minister Catherine King and Workplace Minister Murray Watt announced the funding would be necessary as the government continued working on longer term solutions. Rex went into voluntary administration in July this year as the company struggled with profitability and under $500 million in debt. Samuel Freeman, Justin Walsh and Adam Nikitins of Ernst and Young Australia (EY Australia) were appointed as joint and voluntary administrators in an attempt to secure help or a lifeline for the airline’s remaining regional services....