12 February 2025: The Australian Travel Industry Association (ATIA) supports the idea that the Federal Government should be the buyer of last resort of Regional Express Holdings (Rex) given the first option should always be for a private buyer.
With around $11.5 million in outstanding payments owed to travel agents predominantly in regional and rural Australia, ATIA is also asking the Government to ensure that any public funds used to support Rex’s ongoing operation use a clawback mechanism for these outstanding debts over a 12- month period.
The Federal Government today confirmed additional support will be provided to help maximise the prospect of a successful sale including a waiver of the “use it or lose it” test for Rex regional flight slots at Sydney Airport which will ensure access until 24 October 2026. The Government has also announed that, in the event there is no sale, the Federal Government “will undertake necessary work, in consultation with relevant state governments, on contingency options, including preparations necessary for potential Commonwealth acquisition.”
Today’s announcement is in addition to the Federal Government lending up to $80 million to keep Rex’s regional routes operational until 30 June 2025 and acquiring $50 million of debt from Rex’s largest creditor, PAGAC Regulus Holdings Limited, earlier this year to ensure the airline could continue to operate.
ATIA continues to work closely with Government to ensure the needs of the Travel Sector are considered throughout the process.
QUOTES ATTRIBUTABLE TO ATIA CEO DEAN LONG:
“There’s no doubt that the ideal solution will always be a private buyer. If the Government does buy Rex, they must make good on the money owed to Australian travel agents and airports as a result of Rex’s collapse.”
“Around $11.5 million is currently owed to Australian travel agents who are predominantly small businesses in regional and rural Australia. Like these agents, there are also a number of airports who have significant losses due to the collapse of Rex. Any buyout of that debt or nationalisation of the airline must see these debts repaid as a priority. This can’t just be about sending money to international creditors.”
“Government gave over $5 Billion to airlines during COVID yet despite that we’ve ended up with higher airfares. Australia has the most concentrated aviation market in the world. We also have to acknowledge that a number of the routes Rex operates are actually mandated monopolies so we need a robust third airline business in Australia. ATIA has asked including in our pre-budget submission for the Australian Competition and Consumer Commission to be empowered and funded to undertake an annual market concentration study of international and domestic services and funded to continue its Domestic Airline Competition Monitoring reports beyond 2026.”
“The major issue for Rex is the age of the fleet and this will be a major barrier for any buyer as there is a global shortage of aircraft. If we allow Rex to collapse, it’s going to lead to even higher prices for regional communities but critically also a huge loss of connectivity which will have a significant impact on their economies.”
Key Facts:
About ATIA (www.atia.travel):
The Australian Travel Industry Association (ATIA) is the peak body representing Australia’s $69 billion travel industry. ATIA represents the majority of Australian travel agents, corporate agents, tour operators, wholesalers and ITOs.
In 2024 alone, ATIA members booked $13.5 Billion TTV of retail bookings, $11.8 Billion of Corporate Bookings and $5.6 Billion of Land Operations. Typically, at least 70% of all international air sales in Australia are through our members, and over 90% of corporate sales (medium and large businesses), rather than directly through airlines. Whereas with cruises, 73% of travellers use travel advisors to book.
An impressive 92% of ATIA members are small businesses, with women making up 72% of the workforce.
ATIA administers the ATIA Accredited program, which is the largest and most representative accreditation scheme for travel businesses in Australia. ATIA represents over 1,120 ATIA Accredited members and over 28,000 employees nationwide, directly supporting 16.98 million Australian travellers every year.
About us:
About ATIA (www.atia.travel):
The Australian Travel Industry Association (ATIA) is the peak body representing Australia’s $69 billion travel industry. ATIA represents the majority of Australian travel agents, corporate agents, tour operators, wholesalers and ITOs.
In 2024 alone, ATIA members booked $13.5 Billion TTV of retail bookings, $11.8 Billion of Corporate Bookings and $5.6 Billion of Land Operations. Typically, at least 70% of all international air sales in Australia are through our members, and over 90% of corporate sales (medium and large businesses), rather than directly through airlines. Whereas with cruises, 73% of travellers use travel advisors to book.
An impressive 92% of ATIA members are small businesses, with women making up 72% of the workforce.
ATIA administers the ATIA Accredited program, which is the largest and most representative accreditation scheme for travel businesses in Australia. ATIA represents over 1,120 ATIA Accredited members and over 28,000 employees nationwide, directly supporting 16.98 million Australian travellers every year.
Contact details:
LJ Loch 0488 038 555 or lj.loch@atia.travel