Rex flights between Hobart and Melbourne have been indefinitely cancelled as the airline grounds its entire Boeing 737 fleet and enters voluntary administration.
This decision follows the company’s halt in bookings for the route on Tuesday afternoon and the suspension of share trading yesterday.
Passengers booked to travel between the two cities and other Australian capitals will be moved to flights with Virgin Australia.
In a brief statement on their website, Rex announced that Ernst and Young have been appointed as administrators for Regional Express Holdings Limited and several subsidiaries under the Rex Group.
The airline stated that customers cannot claim refunds but can contact Virgin to be rebooked on the closest available service at no additional cost.
“Holders of affected tickets should not come to the airport for their flight until they have made alternative arrangements with Virgin Airways,” the statement reads.
“If you have an eligible domestic capital city route ticket, you must contact Virgin Australia directly by Wednesday 14 August to rebook on an alternative flight.”
“If you don’t rebook your affected Rex domestic flight by Wednesday 14 August 2024, the booking cannot be honoured and will be void.”
Rex frequent flyer points will also be frozen during the administration.
Regional Saab 340 flights, including those to King Island and Burnie, will continue as normal.
Premier Jeremy Rockliff earlier said he was “really concerned” about the situation involving Rex.
“I will continue to be briefed and update everyone as soon as possible on what the situation means for Tasmanian services moving forward,” Rockliff wrote on X on Tuesday evening.
“Rex plays an important role in our regional communities, particularly King Island and we absolutely stand ready to work with the Federal Government on a pathway forward.”
Rex and Sharp are the only airlines servicing King Island off the north-west tip of Tasmania.
Federal Transport Minister Catherine King said the government “don’t want to see Rex fold”.
“We’re keeping a pretty close eye on the announcement tomorrow and stand ready,” she said.
“We think Rex is a pretty important part of the Australian aviation industry and stand ready to work with them to see whether there’s any assistance or anything the Government needs to do.”
