Brian Mitchell (Lyons, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Infrastructure, Transport, Regional Development and Local Government. What actions is the Albanese Labor government taking to support the continuation of regional flights through the Rex administration process?

Ms Catherine King (Ballarat, Australian Labor Party, Minister for Infrastructure, Transport, Regional Development and Local Government) Share this | Link to this | Hansard source

I thank the member for Lyons for the question. I know that he and every single regional MP who is in this place—and those senators in the other place who represent regional areas as well—know how important aviation is to regional Australia and also know that Rex plays a significant role in that.

The announcement that Rex has gone into voluntary administration has, of course, caused uncertainty for regional communities that rely on their services. Since Rex went into voluntary administration, my department has been working closely with the administrators to assess the situation and the administrators' plans for the continuation of services in regional communities. As I've said from the outset of this process, we all want to see a strong future for regional aviation, and we are leaving all options on the table. To support the continuation of regional flights, the Australian government is guaranteeing regional flight bookings for Rex customers for tickets purchased after the administration period began. That means travellers can book regional flights on Rex throughout the voluntary administration process with confidence that they will either fly or get their money back.

This is not a Commonwealth injection of funds into Rex or the administrators. It is a guarantee for bookings made after the airline entered into voluntary administration. The guarantee will be triggered only if a service is cancelled and where no alternative service has been delivered, and no refund. If the guarantee is triggered, affected customers will receive a refund directly from their credit card merchant or travel booking provider, backed by the government guarantee. Any drawdown of the guarantee is required to be repaid by the administrators. The guarantee applies to any Rex regional flight bookings made after Rex entered voluntary administration, from 9.31 pm on Tuesday 30 July 2024.

This guarantee is about assuring customers and communities that they can and should continue booking regional flights with Rex—flights that allow them to stay connected with their families, their friends and their healthcare and other services while also helping to maintain regional aviation in Australia. It's a message very clearly to regional Australia: we know how important reliable air services are to you, and we are not going to allow your communities to be left behind. And to members of the public, this guarantee means you can continue to book Rex flights and should do so during the period of voluntary administration, and the guarantee allows some confidence about that.