Following its voluntary administration announcement, Rex Airlines has grounded its flights between major cities, including the Gold Coast.
On Monday, the airline’s shares were halted from trading amid growing speculation of financial troubles.
By Tuesday night, Rex confirmed it had appointed Ernst and Young as administrators. While regional routes will continue, the airline has suspended its 737 services between major cities, including daily flights between the Gold Coast, Sydney, and Melbourne.
In response, Virgin Australia has offered to rebook affected Rex customers free of charge. Passengers must contact Virgin by August 14.
Additionally, Virgin Australia plans to take over the lease of three of Rex’s 737 aircraft, which were formerly part of Virgin’s fleet before its own administration.
Rex has struggled since expanding to compete with Qantas, Jetstar, and Virgin on major routes, leasing several 737s to serve cities such as Sydney, Melbourne, and Brisbane.
The airline has reportedly been losing up to $1 million weekly, exacerbated by internal conflicts.
News and image source: Hot Tomato
