The federal government has flagged it is 'reluctant to throw money at the problem' after Australia's third largest airline after it went into voluntary administration.
The government has stepped in to ensure Rex Airlines continues services across regional Australia, as passengers travelling to major cities are left stranded at airports and hundreds of the company's employees are set to lose their jobs after the voluntary administration announcement overnight.The federal government has flagged it is"reluctant to throw money at the problem" after Australia's third largest airline after it went into voluntary administration.
Ms King noted the struggling airline would likely reach out for more assistance, but she said the Albanese government was hesitant to bail out the airline with taxpayer money. Qantas has been previously accused of"slot hoarding", a practice which sees major airlines book and then cancel flights to prevent competition at airports.Ms King said the government had announced a reform of slots which was being worked on, with the legislation to be introduced to parliament but she did not provide a date.
Parts of regional Queensland fear their outback towns and communities will be left high and dry if Rex is not able to bounce back. It is another blow for the airline industry in Australia, with Rex and low-cost airline Bonza both failing to challenge and compete with Qantas and Virgin.
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