Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King said this week that the ALP government will distribute $5 million to be shared among regional and remote airports that supported Regional Express during the airline's administration period.
REX is currently in the process of being sold to US company Air T, after being in administration and on government support since July 2024.
"This new program will mitigate financial barriers to these organisations continuing to provide essential services to their communities," King said.
"Eligibility will be based on the amount owed to the organisation by the Rex regional business when it entered voluntary administration.
"This program is a separate Australian Government initiative and is not part of the negotiations with Air T for its acquisition of Rex."
The funding will go to regional and remote airports that are unsecured creditors of REX, with sums owed ranging from $45,000 to $650,000.
Australian Airports Association CEO Simon Westaway welcomed the program, saying the funding would much-needed relief for impacted airports.
“This is wonderful news for our regional and remote airports,” Westaway said. “We thank the Federal Government for launching this program and providing vital support to regional and remote airports that supported Rex during challenging times.
“This announcement demonstrates the government’s recognition of the importance of regional airports to Australia’s transport network and the communities they serve.
“Many regional airports operate at a loss, burdened by ageing infrastructure, rising security requirements, regulatory pressures and staffing costs.
“Despite this, airports continued to provide access and services to Rex Airlines and supported them to serve passengers across regional Australia."
REX's network connected the capital cities to 45 regional and remote locations, including Carnarvon, Coober Pedy, King Island, Merimbula, Julia Creek, Thargomindah, Doomadgee and Mornington Island.