It could be months before Rex Airline workers receive their pay and entitlements

ABC NEWS (Australia)

It could be months before Rex Airline workers receive their pay and entitlements -- with efforts continuing to keep the heavily indebted regional carrier flying.

Transcript

00:00Well, the question hangs over Rex's future right now, and there's lots of answers that

00:06people will be seeking, most of all the staff of the airline, the regional residents who

00:10rely on those routes, as well as the creditors who are owed a large sum of money.

00:15It's been said that Rex is about $500 million in debt, with 4,800 creditors still waiting

00:21for money that's owed to them.

00:23That debt is hanging over Rex this month as the administration process gets underway.

00:28So far, we know that they've grounded their Metro 737 routes, instead choosing to focus

00:33on regional routes, as was their original purpose.

00:37Administrator Sam Freeman spoke a little bit earlier today, and he says the airline is

00:41looking to focus solely on those routes.

00:45We're saying to Australians, keep booking with Rex.

00:48The administrators are in control of the business and are overseeing its operations.

00:52We have demonstrated since the appointment that the Rex planes are getting people where

00:57they need to go to, and we've secured funding to enable us to continue to do so in the administration

01:03period.

01:04We've heard further reports that the airline was looking to potentially market or sell

01:09some of those smaller flights prior to going to administration, but now administrators

01:13will be looking at the assets that Rex has, the land, the buildings that they might be

01:17able to look at to realise and recover some value.

01:21Several groups have indicated their interest in being involved in the committee of inspection,

01:25including government representatives, airlines and unions, who are looking to help and assist

01:30Rex in any way they can.

01:33Administrators are still in their investigative period, looking at what went wrong at Rex

01:37and why, but their aim is to provide the best return for creditors, although staff could

01:42be waiting months for the money that's owed to them.

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