Rex in voluntary administration, ending all 737 services

[ben95]

I agree those areas need them or an airline of some sort, even if Gov supported.

With the amount of money the gov needs to or is already pumping into Rex surely it’s better to see it go bust, then run a essential air service style competitive tendering process to subsides an operator to fill the gaps.

 

[Saab34]

With the amount of money the gov needs to or is already pumping into Rex surely it’s better to see it go bust, then run a essential air service style competitive tendering process to subsides an operator to fill the gaps.

Labor appear to be sticking to the whole ‘saving regional airline’ line.

I really don’t see the issue on a political front if they tender out Rex work.

I know all this nonsense is nothing but politics, but even throwing my political hat on for a moment, and thinking like a Labor MP, I don’t see how it will backfire on the Labor front if they offload the work to others, maintain the connections, work with those others to secure employment for those etc. They could be clever and actually dissolve Rex, but still maintain the regional connections, employees. But I think that’s just too much for them, the whole we are saving the regional airline thingy is obviously easier alongside taxpayer cash. Don’t really need the department to do anything but wire lines of cash out of Canberra.

 

[moa999]

really don’t see the issue on a political front if they tender out Rex work.

Think the main issue would be disruption.

Particularly whether there are enough suitable aircraft available and whether any operators would take on the risk of the Rex fleet.

 

[Ansett Nostalgic]

Albo is an ex Transport Minister and probably has a personal interest in this sort of stuff including a desire to not be seen as causing the regional airline to go out of business.

 

[ejb_nz]

The prime minister just doesn't want to be the PM when a regional airline goes broke.

It is all about optics.

 

[dajop]

Perhaps, rightly or wrongly, also there’s some sensitivity around a perception of free kicks to Qantas, given the media uproar around the QR capacity decision and Albo’s + 1 (at the time his son) getting CL access.

At the end of the day $30m is small change compared the widespread grift in the NDIS program. I do wonder how much is going to operate the airline and how much is going into the pockets of the administrators.

 

[moa999]

l wonder how much is going to operate the airline and how much is going into the pockets of the administrators.

I'm sure they are doing well on hourly rates.

 

[antycbr]

I'm sure they are doing well on hourly rates.

I guess we can’t separate the administration from the operations and contract the operations out? Having a big 4 accounting firm running an airline is expensive. The government really needs to draw a line under this and move to EAS, and get the intrastate flight prices regulated or capped. Air service as a form of public transport for regional and remote locations.