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Hundreds of jobs to go as part of Rex Airlines entering voluntary administration
ABC NEWS (Australia)
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7/31/2024
Rex Airlines has entered voluntary administration, leaving thousands of workers in limbo. The Transport Workers Union says it's been told more than 600 jobs will go.
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00:00
The nationals and unions are on a rare unity ticket of sorts, both calling for the federal
00:07
government to step in and provide financial assistance to the airline.
00:13
The union, the transport workers union, going a step further beyond the calls of some other
00:19
unions and the nationals in saying that the government should actually seriously consider
00:26
taking an equity stake in Rex.
00:29
Now that would mean government ownership of an airline again.
00:33
Of course, going back to Ansett, that was the case, but it hasn't been for some time.
00:39
And yet again, we are seeing a situation where a regional carrier, albeit one that has ventured
00:46
into flying on routes between capital cities, is struggling.
00:55
It's of note here that at a state government level, in Queensland and WA, the Rex, the
01:01
carrier, is subsidised to fly on some of those more regional routes as well.
01:08
So they already do receive some assistance from various levels of government.
01:12
They also received a package of support during COVID from the federal government then as
01:20
well.
01:21
So the federal government has been saying, look, this has only just happened.
01:26
But initially they are saying they've been quite critical of Rex's venture into providing
01:35
more services to capital cities, saying that the primary focus is to ensure that these
01:41
regional flights do continue, and in many cases, the only flights between regions.
01:48
They say they're yet to receive a specific request for financial support, but the transport
01:53
minister, Catherine King, says they would be hesitant to just provide money with no
02:00
strings attached, saying they would rather see a longer-term approach.
02:07
The treasurer, Jim Chalmers, has also said how critical these flights are, particularly
02:11
for some of those regions where they are the only airlines operating, and has said
02:19
that as part of this process, they are working with other airlines on potential for workers,
02:27
if they are put off by Rex, to be re-employed by some of the other carriers.
02:34
Servicing these regional routes is really important for regional communities and for
02:38
regional economies.
02:39
We know that.
02:40
The Prime Minister, Minister King, the Premier of NSW have all made a similar point, which
02:45
is that we want to see those regional services continue.
02:50
Minister King, Catherine King, is also talking with the other airlines to make sure that
02:55
if there are job losses, that the other airlines can re-employ and re-deploy some of these
03:00
workers as well.
03:03
Now on the job front, there has been a meeting underway with administrators, and the latest
03:07
fears in terms of jobs affected by this are that there will be up to 360 job losses due
03:15
to the grounding of the 737 planes, so the ones that are used for those capital city
03:21
flights, and also a potential 250 across other areas of the business, so some 610 all up,
03:30
with warnings that could grow up to around 850 as a result of this.
03:37
For more UN videos visit www.un.org
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