The Albanian government is being urged to buy beleaguered airline Rex, after the regional airline went into voluntary administration in July.
Up to 71 per cent of Australians support government intervention to ensure Rex Airlines can continue serving regional routes, according to a new poll.
Only 10 percent of respondents disagreed with the statement, while the remaining 19 percent said they “didn’t know.”
Three-quarters of YouGov’s 1,044 respondents said the government should take an equity stake when bailing out troubled companies such as Rex.
Meanwhile, 74 per cent of respondents also said there needed to be a new independent commission to set standards for jobs and services in aviation, which would be separate from the ombudsman scheme proposed by Transport Minister Catherine King. .
Transport Workers Union national secretary Michael Kaine said the survey was evidence that Labor had a mandate to buy shares in the airline.
“Regional Australia needs Rex, and this poll shows overwhelming support for the federal government to step in and safeguard its future,” he said.
‘Not only are hundreds of aviation jobs at stake, but these routes are also vital to regional Australia’s business, tourism, healthcare and community services. The federal government must keep Rex flying.
A new poll found that voters largely supported greater government intervention to rescue Rex. The regional airline is currently under voluntary administration (aircraft pictured)
Transport Minister Catherine King (pictured with Anthony Albanese) says she is not ruling out the government buying a stake in Rex Airlines, after the airline collapsed in August.
Since Rex’s collapse, EY Australia administrators Samuel Freeman, Justin Walsh and Adam Nikitins have been tasked with finding a new owner for the airline, with a deadline extended to November 25.
Meanwhile, the government has ensured the continuation of the airline’s regional flights.
Following the collapse of Rex, customers who had purchased fares between the capital cities were also allowed to rebook through Virgin Australia and Qantas at no extra charge.
Mrs King has left the door open to possible government involvement, saying “no options are off the table”.
But he said the government would like to see a “market-driven solution”.
“Regional aviation is critical to keeping Australians connected to their families, employment opportunities and services,” he said.
“We are working closely with Rex administrators and have acted to secure regional tickets through administration, as well as ensuring Rex maintains its regional NSW slots at Sydney Airport.”
Opposition transport and regional development spokeswoman Bridget McKenzie said the government should publish more details and ensure regional routes would continue to be served.
“The Albanian government has been silent on the collapse of Rex Airlines for months, leaving regional Australians with little confidence that Labor has any plan to fix our aviation sector, after not one but two regional airline collapses this year,” he said.
“The Prime Minister is shirking his responsibilities to regional Australia and has failed to explain how his government will ensure that no regional community is left isolated or worse off.”
Labor Transport Minister Catherine King (pictured) left the door open to possible government buy-in, saying there are “no options off the table”.
Senator McKenzie has previously noted the need for greater competition in the aviation industry, and Rex’s demise is partly attributed to its failure to enter routes serving Brisbane, Melbourne and Sydney, which were dominated by the duopoly of Qantas and Virgin.
Despite this, the Coalition has said airline divestment powers aimed at breaking up Qantas were not part of its political agenda.
Kaine said the collapse of low-cost airline Bonza in July, following that of Tigerair in 2020, showed the need for airline policy that delivers fair competition and therefore better outcomes for customers and staff. .
“The continued instability in this sector, driven by Qantas relentlessly chasing profits and crushing new entrants, is creating deep uncertainty for aviation workers and the general public,” he said.
“The federal government must implement a long-term solution that provides certainty for regional Australia, as well as ensuring decent standards for workers and the traveling public.”
