King Island flights unaffected as Rex enters voluntary administration

KING Island has welcomed the continuation of the vital Rex Airline service as the troubled carrier drops its major city routes and continues regional flights as normal.

After days of speculation, late on Tuesday night Rex posted a message on their website announcing that Ernst Young Australia has been appointed voluntary administrator of the company, and that all 737 jet services between major cities had been immediately cancelled.

Relieved King Islanders had feared losing their daily Rex Airlines service between King Island and Melbourne.

King Island Mayor Marcus Blackie said the island was relieved that Rex would return to their core business. 

“Despite our recent dispute over specific fare pricing for King Island flights, we have always sought good working relations with Rex and there remains great opportunity for continued capacity growth on the profitable King Island flight sectors,” he said.

“We will reset the relationship once the new Rex management settles in and eagerly work towards that mutually beneficial outcome.

“Aviation remains our Highway #1 and it is critical that appropriate competition and choice exist to keep fares reasonably priced, as well as ensure that passengers and air freight are efficiently delivered to us, maintaining year-round schedules.”

Earlier this year, Mr Blackie got into a very public spat with the company after suggesting that the airline was “ripping off” the King Island community with over-priced airfares.

Following his claims and refusal to apologise, the airline effectively banned the mayor from travelling with them.

“On a personal level, having let bygones be bygones, I continue to fly Rex and remain a great customer myself, I look forward to our new relationship”, Mr Blackie said.

King Island Tourism apresident and tourism operator Adam Hely Rex is an important carrier for King Island.

“The Federal and State government’s public support and desire to ensure Rex keeps flying and the administrator’s intentions to keep Rex trading provide confidence to King Island and travellers. 

“Bookings can continue as normal and look forward to a busy future with our in and outbound airlines,” he said.

“There have already been bigger group forward booking cancellations based on the earliest information around Rex’s trading halt,” he said.

Premier Jeremy Rockliff said the State Government is committed to ensuring our regional and rural communities continue to grow and prosper, and that our visitor economy remains strong.

“Many of our regional and remote communities and our Tasmanian businesses rely on our airlines to deliver essential products and services, connect them to other areas of Tasmania and the mainland and provide freight, mail and logistics.

“These aviation services are also important to our tourism and hospitality industries which inject around $3.5 billion in visitor spending into the Tasmanian economy. 

Meanwhile, in what is shaping up as a stouch betweeen regional operators, Sharp Airlines managing director Malcolm  Sharp says “Rex’s heart has been everywhere else but the country”.

“For a number of years operators like Sharp have been the subject of aggressive fare pricing and tactics by Rex. While Sharp has grown and remained viable during this period, this type of behaviour has obviously been unsustainable for Rex,” the company said.

Sharp Airlines has been operating for 34 years and services five states in the airline, charter and FIFO market. The airline provides Regular Passenger Transport [scheduled flights] and air freight linking King Island to both Melbourne and Tasmania. 

“Sharp Airlines is continually growing and looking for opportunities,” the company said.  

Rex has advised that customers holding tickets on their now cancelled jet service are eligible to transfer their ticket free of charge to Virgin Australia on 13 overlapping Virgin services. Customers have until August 14 to claim.