Travel agents are once again likely to be among the losers following
the decision by Australian domestic carrier Rex to call in the
administrators.
“Many travel agents, in particular, are currently out of pocket with
significant amounts outstanding and owed by Rex Airlines,” said
Australian Travel Industry Association (ATIA) CEO, Dean Long.
Rex is the second domestic airline in Australia to fail, following the collapse of Bonza Airlines in April.
Rex is a mainly regional carrier who expanded to operate on
Australis’a capital city routes monopolised by Qantas and Virgin
Australia.
Rex has now grounded its small fleet of Boeing 737 aircraft but is
continuing to fly regional routes utilising Saab turbo-prop aircraft.
Administrators EY hope the regional services can be maintained.
The Australian Travel Industry Association is calling on the Federal
Government to ensure that any support package for Rex Airlines includes
compensation for the wider travel ecosystem.
“Ensuring that those travel agents impacted are supported is
essential given the circumstances, and also important for maintaining
the integrity and competitiveness of the Australian travel industry,”
Long said.
PAG Asia Capital’s private equity fund is a major lender to the
regional airline, investing some A$150 million (US$98m) to allow Rex to
expand into capital city routes.