The Transport Workers Union (TWU) has strongly endorsed the Federal Government's explicit commitment in yesterday's budget papers to potentially acquire Rex Airlines should private sale efforts fail.
The budget papers state: "In the event there is no sale, the government will undertake work on contingency options in consultation with relevant states, including preparations necessary for potential Australian government acquisition of Rex."
This budget commitment goes a long way to buttressing the future of critical regional routes while protecting thousands of jobs.
TWU National Secretary Michael Kaine said: "The Federal Budget has delivered what regional communities and aviation workers desperately needed - a strong commitment to step in and secure Rex's future if the market fails to deliver. This will maintain regional connections, recognising that essential national infrastructure requires public investment and oversight.
"After decades of aviation policy that privatised profits while socialising losses, the government is acknowledging what workers have long understood - some services are too important to be left for corporate vultures to pick at."
The budget papers outline the government's continued financial support for Rex during administration, including the previously announced $80 million loan to fund operations until June and acquisition of $50 million in debt, making taxpayers Rex's largest secured creditor.
Recent YouGov polling commissioned by the TWU shows overwhelming public support for this approach:
- 71% support Federal Government intervention to maintain Rex's regional services
- 75% believe the Government should take equity stakes when providing airline bailouts
- 74% support establishing an independent commission to set standards for aviation jobs and services
“We applaud this vital first step to secure Rex's future. This should be built upon with comprehensive reform such as Safe and Secure Skies Commission,” Kaine said. "The commission would provide the regulatory framework needed to prevent the constant cycle of crisis and bailout that has characterised Australian aviation.
"The government's commitment to potentially taking ownership of Rex aligns with global best practice, and deserves support across the parliament."
Contact details:
Nick Lucchinelli
0422 229 032