<?xml version="1.0" encoding="ISO-8859-1"?> <docID>336851</docID> <postdate>2025-01-23 11:03:46</postdate> <headline>Government buys $50m worth of debt to keep Rex flying</headline> <body><p><img class="size-full wp-image-299867" src="https://citynews.com.au/wp-content/uploads/2023/12/Rex_Aircraft_Aerial_4-resized-e1703282678755.jpg" alt="" width="765" height="510" /></p> <caption>Embattled Rex Airlines will receive another $50 million in assistance from the federal government.</caption> <p><span class="kicker-line">By <strong>Adrian Black</strong></span></p> <p><strong>The federal government has thrown embattled regional airline Rex another lifeline as it buys up $50 million of the carrier's debt.</strong></p> <p>The purchase will ensure regional communities stay connected and will keep access to essential medical and freight services.</p> <p>"The Albanese government is ensuring Rex Airlines regional services will continue, supporting the administrators on next steps," Transport Minster Catherine King said in a joint statement with Finance Minister Katy Gallagher.</p> <p>Rex went into administration in mid-2024 with about $500 million in debts, after a push into Australia's most competitive routes dominated by Qantas and Virgin.</p> <p>The debt purchase will make the government Rex's principal secured creditor and it will seek to become a voting member on the committee of inspection.</p> <p>"These actions preserve important economic, medical and freight services, supporting regional liveability and regional economies," the ministers said.</p> <p>It is the second lifeline extended to the battled airline in a couple of months.</p> <p>Late last year, the government provided a $80 million commercial loan to Rex's administrators to keep regional routes open, cover early entitlements for former workers and to guarantee tickets for regional routes.</p> <p>In December, the corporate regulator announced it would take Rex and four directors to court over continuous disclosure breaches for failing to reveal a $35 million shortfall until days before the financial year ended.</p> <p>The Australian Securities and Investments Commission is attempting to have four directors disqualified over alleged corporate governance failures.</p> </body>