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The government also announced a separate plan to establish a program for local government and regional and remote airports โ capped at $5 million โ that supported Rex through the voluntary administration process.
Australian Airports Association CEO Simon Westaway called the support โwonderful news for our regional and remote airportsโ and thanked the federal government for the โvital support to regional and remote airports that stood by Rex during challenging timesโ.
Earlier on Tuesday, administrators EY, working for the government, confirmed that creditors of Rex would receive nothing. The deed of company arrangement provides no return to ordinary unsecured creditors for the Rex, the document stated, referring to suppliers, ground handling agents, airports and fuel providers for the airline.
In its report, EY said the factors that contributed to Rexโs failure included the global pilot shortage, which led to โsuboptimal fleet utilisationโ with not enough planes flying.
Ongoing โsupply chain issues, particularly engine maintenance componentsโ were also a contributing factor.
Rexโs decision to invest in 737s to fly capital city routes came as it struggled to keep its Saab regional planes flying core regional routes, which further constrained cashflow. Rexโs fleet size simply wasnโt big enough to service the cities and the bush.
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