Feds back Rex

The Federal Government has announced it will guarantee regional flight bookings while airline Regional Express (Rex) is in voluntary administration.

“Travellers can continue to book regional flights on Rex during this process with certainty that they will either fly or get their money back,” Federal Transport Minister Catherine King said.

The guarantee applies to all regional flight bookings made after Rex entered voluntary administration at 9.31pm on July 30.

“This is not a Commonwealth injection of funds into Rex or the administrators. It is a guarantee for bookings made after the airline entered into voluntary administration,” she said.

“The guarantee will only be triggered if a service is cancelled and where no alternate service has been delivered, and no refund if the guarantee is triggered", the Minister said in question time.

The move was welcomed by Premier Jeremy Rockliff, who said that his Government had been advocating for support of this type.

"Rex plays an important role in connecting our regional communities, particularly King Island, as well as linking access to essential services, business and freight."

Both the Federal Government and Rex administrators Ernst & Young both said this is not a bail out, but it is to give travellers confidence in bookings over the next month of administration.