Australian carrier Regional Express (Rex Airlines) has stopped taking bookings for flights on domestic routes between major cities.
The cessation of bookings comes amid the 29 July suspension of the company’s stock pending an announcement.
While the carrier’s booking engine is unable to book flights between key cities as Brisbane, Melbourne, and Sydney, it still allows passengers to book flights on Saab 340 services to secondary cities.
The suspension of bookings may indicate that the airline could, at the very least, be on the verge of abandoning its effort to break into Australia’s tough domestic market between key cities using Boeing 737-800s.
Media reports also suggest that the carrier could go into administration.
Rex’s gamble to crack Australia’s challenging domestic market originated during the coronavirus pandemic, and saw the carrier move beyond its traditional network, which focused on regional routes using Saab 340s.
While Rex is a minor player when compared with rivals such as Qantas and Virgin Australia, its regional network is important because it provides much needed connectivity to far flung towns. During a television interview, Australian prime minister expressed concern about the situation at Rex and its potential impact for regional travel.
Minister for Infrastructure, Transport, and Regional Development Catherine King was delegated to enquire about the airline’s situation.
“We have sought information from the airline through minister Catherine King, who came to see me about this today,” said Albanese.
“And through the department we will continue to monitor what happens there. Rex is particularly important for regional communities, and there are a range of communities in New South Wales, in Queensland, in South Australia and right around the country that rely upon Rex, where Rex is the only airline to go to some of those destinations, so it’s important.”
Rex has struggled with profitability. For the six months ending 31 December 2023 the carrier lost A$3.2 million ($2.1 million).
There is also wrangling in the carrier’s boardroom. On 12 July, former Rex boss Lim Kim Hai filed a notice to remove four directors. The move came one month after he stepped down from the leadership team.
Among those Lim filed to remove is airline chair John Sharp.
