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Canberra repays Rex debts owed to two Tasmanian airports

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Canberra repays Rex debts owed to two Tasmanian airports

Two Tasmanian airport operators have been reimbursed close to $120,000 by the federal government for debts left unpaid by Rex Airlines.

Burnie Airport Corporation, majority owned by Burnie City Council, received $89,722 for its operations at Burnie Airport.

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TasPorts, the state-owned business that runs Devonport Airport, was paid $28,709.

Both had their eligible debts covered in full. Nationally, 95% of applicants qualified for the scheme and were reimbursed for the full amount they were owed.

The Tasmanian payments were part of a wider $4.8 million package distributed to 34 regional and remote airports across the country last week.

Burnie Airport Corporation received $89,722 for unpaid Rex Airlines debts. Image / Supplied

New South Wales councils took the largest share at roughly $1.94 million, followed by Western Australia with about $1.17 million.

Queensland operators were owed close to $880,000, while South Australian councils received about $580,000.

The funding was delivered through the Regional and Remote Airport Support Program, which was set up after Rex collapsed into voluntary administration in July 2024.

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American aviation firm Air T completed its purchase of the airline in December 2025.

Canberra supported the deal with a $60 million assistance package, plus another $108 million earmarked for restructuring existing debts owed to the government.

Devonport Airport was among 34 regional airports reimbursed nationally. Image / Supplied

Federal Infrastructure Minister Catherine King said the latest payments would help operators keep essential air services running.

“We committed to and delivered the successful sale of Rex Airlines to keep regional communities connected to the services they need,” King said.

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“This financial support is yet another demonstration of our unwavering support for regional and remote aviation.”

The reimbursements come as Rex prepares to scrap its Melbourne to Devonport route from June 20, along with its King Island to Burnie service.

The airline blamed rising fuel costs for the changes.

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