Rex Airlines (ASX:REX) - Voluntary Administration

Rex Airlines (ASX:REX), an Australian regional airline based in Mascot, NSW, entered voluntary administration on 31 July.

The airline, which commenced operations in 2002, has recently embarked on an expansion into the Golden Triangle routes between Sydney, Melbourne and Brisbane.

Rex was also able to capitalise on the downfall of other airlines, acquiring leases for Boeing 737 jets formerly flown by Virgin Australia and airport slots required for take off and landing from international airlines which retreated during the pandemic. However, a post-pandemic consumer reluctance to fly caused the company to discount its rates, which ultimately descended into a price war with other airlines.

Samuel Freeman, Adam Nikitins and Justin Walsh of EY were appointed administrators.

Hundreds of staff have reportedly already been terminated, while Virgin Australia has ironically stepped in to offer flights to customers affected by Rex’s sudden collapse.