Dean Long, chief executive of the Australian Travel Industry Association, made a statement regarding the Australian Federal Government’s recent acquisition of AU$50 million of Rex Airlines’ debt.
Long hailed the acquisition as an important measure to ensure the future of a competitive domestic airline sector in Australia.
In a statement released today, 23rd January, he said: “We welcome the announcement that the Federal Government has taken this step to become the principal secured creditor of Rex. It’s great news for travelling Australians, the communities who rely on Rex and for the health of the Australian Aviation sector. Rex is too important to be allowed to fail.”
Long pointed out that Australia’s domestic aviation sector needs a third airline, and if Rex is allowed to fail, the reality is that even if another airline decides to enter this market, it will take so much longer for them to come into play.
He added that such a delay would hit regional and rural Australia hard as well as the hip pocket of travellers.
Long said: “Allowing the company to continue means there’s also an increased likelihood that our Members, the travel businesses who are owed money as a result of having sold Rex tickets, are more likely to get at least some of their money back.”
At present, 98 percent of Australia’s domestic passengers have a choice between just two airlines.
This is seen as a severe disadvantage, given how the country has the most concentrated air market in the world.
Long concluded by saying: “Ensuring the future of a third airline in Australia means we have competition in the skies as well as access for regional and rural Australia.”
