The Australian Government is taking decisive action to ensure the continuity of essential regional air services following Rex Airlines’ entry into voluntary administration in 2024.
In a significant move, the government has acquired $50 million of debt from PAGAC Regulus Holdings Limited (PAG). PAX is currently Rex’s largest creditor.
This acquisition aims to prevent the worst-case scenario – the liquidation of the regional airline. The government financial support measure aims to safeguard the vital connectivity of Australia’s regional and remote communities.
Latest Debt Acquisition by Albanese Government
By acquiring the debt, the government becomes the principal secured creditor. As such, it can actively participate in the decision-making process as a voting member of the Committee of Inspection.
This approach demonstrates the government’s commitment to finding a sustainable solution that prioritizes the needs of regional Australians.

Rex Airlines Move to Voluntary Administration in 2024
Rex Airlines entered voluntary administration in mid-2024 due to a combination of factors, including:
- High debt levels: The airline had accumulated significant debt, estimated to be around $500 million.
- Expansion into competitive markets: Rex’s expansion into major city routes, traditionally dominated by Qantas and Virgin, played a large role in the airline’s downfall. In this market sector it faced stiff competition and higher operating costs against two well established operators.
- Financial losses: The airline reported substantial financial losses in the 2022/23 financial year.
Infrastructure Minister Catherine King emphasized the critical importance of this latest debt acquisition. She explains that the measure aims to prevent adverse outcomes for regional communities and ensuring continued air connectivity.
The initial accelerated sale process conducted by Rex administrators in mid-2024 failed to identify a suitable buyer for the airline’s regional operations. The Australian government now remains actively engaged with the administrators throughout the extended convening period.

Regional Aviation Services: A Crucial Lifeline
This latest action underscores the government’s desire to maintain accessible aviation services for Australian regional and remote communities.
The government recognises the crucial role of the Rex network in supporting local economies. It has taken a multi-pronged approach to mitigate the impact of Rex’s financial difficulties.

Previous Government Support
Prior to this debt acquisition, the government provided a commercial loan of up to $80 million. This was provided to the airline’s administrators in order to sustain vital regional routes.
This proactive measure ensured the continued operation of essential air services during the administration period.
Furthermore, the government granted early access to the Fair Entitlements Guarantee (FEG) for former employees of Rex Airlines Ltd (the Boeing 737 operation).
To date, the Employment and Workplace Relations Department has processed 302 claims from 306 former employees, disbursing over $7.1 million through FEG.
These concerted efforts by the government aim to preserve critical economic, medical, and freight services, thereby supporting the liveability and economic prosperity of regional Australia.
By taking a proactive and multifaceted approach, the government is seeking to ensure a positive outcome for Rex Airlines and the communities that rely on its services.