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."
Whilst welcoming the government's $5 million funding for regional and remote airports, and a $60 million assistance package to support the sale of REX, Regional Aviation Association of Australia (RAAA) CEO Rob Walker called on the ALP to support all regional operators.
“The RAAA has strongly advocated that regional and remote communities must have continued access to vital air services. We are calling on the government to support all Australian regional airline operators not just Rex,” Walker said.
“The announcement means that the Government has provided over $220 million in support of Rex. We are asking the Government to also assist all hardworking Australian regional airlines. Assistance through government backed loans, government guarantees, or tax incentives would potentially help.
“Without action on the key issues now the future looks increasingly bleak for regional and remote aviation services. Regional communities across Australia risk losing critical aviation services without urgent political and policy action.
“RAAA member airlines operate regionally with similar sized aircraft and the same operational costs as Rex. We are asking Government to help secure the future viability and sustainability of aviation by supporting all regional airlines and the communities they serve."
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.