Hot on the heels of the failure of start-up airline Bonza, Australian carrier Regional Express (Rex) is fighting for survival.
If Rex closes, the cost of airfares under powerful duopoly Qantas and Virgin Australia would almost certainly rise.
Rex is currently in a share trading halt and is trying to turn around some financial issues. It has not posted a media statement on its website for over a month and as of Tuesday afternoon its website was not taking bookings on some routes.
Rex was predominantly a regional carrier until two or three years ago but has recently been operating in competition with Qantas and Virgin Australia on major routes.
The two big guns have a combined 93% of the market.
“One thing we need to do is to make sure that we have a viable and ongoing Australian aviation industry,” Australian Prime Minister Anthony Albanese said.
Albanese, unfortunately, often talks a good game but fails to deliver. There is no indication yet that he will step in.
The PM said if Rex went under many outback and country communities would suffer.
“Rex is the only airline to go to some of those destinations, so it’s important,” he said.
Stay tuned.
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