<?xml version="1.0" encoding="ISO-8859-1"?> <docID>338059</docID> <postdate>2025-02-12 09:01:43</postdate> <headline>Regional airline Rex could become next national carrier</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>Rex could become the first national carrier in three decades if a suitable buyer can't be found.</caption> <p><span class="kicker-line">By <strong>Kat Wong</strong> in Canberra</span></p> <p><strong>The federal government could acquire Rex Airlines if a suitable private sector buyer can't be found for the embattled regional carrier.</strong></p> <p>The government will work with Rex administrators and shortlisted bidders to find a buyer committed to providing an ongoing and reasonable level of service to the regions, value for money and good governance.</p> <p>If that falls through, Labor will begin working on contingency plans – including preparations for a potential Commonwealth acquisition.</p> <p>"Regional Australians deserve access to quality and crucial regional aviation services," Prime Minister Anthony Albanese said.</p> <p>"That's why we're taking steps to ensure the best possible deal for the sale of Rex."</p> <p>This will be the second attempt to sell Rex after it fell into voluntary administration in mid-2024.</p> <p>Questions were raised over the government's role in Rex's future after it acquired $50 million of debt from Rex's largest creditor to ensure the airline could continue operations and loaned up to $80 million so the carrier could run regional routes until the end of June.</p> <p>Should Rex be nationalised, it would be the first time a federal government has owned an airline in three decades after Qantas was privatised in 1995.</p> <p>"When markets fail or struggle to deliver for regional communities the government has a role to ensure people do not miss out on opportunities, education and critical connections," Federal Transport Minister Catherine King said.</p> <p>"We are recognising that today and stepping in to keep these routes in the air."</p> <p>The government has also guaranteed Rex's regional flight slots at Sydney Airport until October 2026.</p> <p>It also revealed it will spend $12 million to upgrade regional airports across NSW.</p> <p>This includes a $3.8 million investment in Merimbula Airport's runway extension, $5 million for runway upgrades at Albury Airport and other commitments at Mudgee, Griffith, and Moree airports.</p> <p>The Transport Workers' Union said if Rex were nationalised it would be a significant turning point in building an aviation industry for the "public good".</p> <p>"This announcement... is a huge moment for the aviation industry," national secretary Michael Kaine said.</p> <p>"This is a vital step towards a future where aviation actually works for the people of this country, not its overpaid executives."</p> </body>