Main King Island air link at risk as Rex hits financial turbulance

UPDATE: Flights to and from King Island via Rex Airlines are still "bookable", as Sharp Airlines offers to step in.

Amidst reports of some flights no longer being "bookable", the Courier searched up seats on Rex Airlines from King Island to Melbourne next Tuesday (6th August), and was able to do so. An attempt to book a flight from Hobart to Melbourne on the same day (Rex currently has a daily service between the two cities) returned a message saying "there are no flights available for the selected date."

This sliver of positive news appears to support speculation that Rex might close down their 737 service between major cities, while retaining regional routes such as King Island.

At the same time, Sharp Airlines, who currently fly between destinations including King Island and Essendon Airport, have offered to step in and assist.

"Sharp Airlines is ready to step up to the task and we have excess capacity, crew and aircraft which we can deploy at short notice to fulfil King Island's needs", Managing Director Malcolm Sharp said.

EARLIER: KING Island’s main aerial lifeline to mainland Australia is at risk, after Rex Airlines was today put into a trading halt amidst reports of the appointment of “turnaround” experts to rescue the company from potential collapse.

Rex Airlines flies daily from King Island to Melbourne’s Tullamarine Airport, serving as the main passenger link between the Island and Melbourne.

Earlier this year, King Island Mayor Marcus 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.

Formerly known as Regional Express, Rex has struggled to return to profitability since the Covid-19 pandemic, fafter its expansion into major city routes.

Rex's shares have plummeted to levels unseen since the early days of the Covid-19 pandemic, last trading at 56 cents per share.

Rex employs about 2,000 people, many in the 737 jet operation that began in 2021. Despite announcing the arrival of a tenth 737 late last year, only nine are currently in service.

Rex, headquartered at Melbourne Airport, provides a regular passenger transport service to and from King Island and to Burnie, Devonport and Hobart.

In a statement, Rex said: “The company is currently in an ASX trading halt pending making a material announcement.

“Accordingly, in the meantime it isn’t appropriate for us to make any further comments until such announcement is made.”