Regional Capitals Australia has welcomed a move by the Federal Government to ensure the ongoing connectivity of Australia’s regional and remote communities.
The government announced it will acquire $50 million of debt from Rex’s largest creditor to become the principal secured creditor, in a bid to stop the liquidation of the airline which is currently in administration.
RCA Chair, Port Hedland Council mayor Peter Carter, stated the investment would bring a sense of relief for many people in regional and remote areas around Australia who were on tender hooks about Rex’s future.
“Some communities across our regions are only serviced by Rex flights and can only fly to access education, medical services or family and friends,” Cr Carter said.
“Air travel is also vital for many industries to thrive, including agriculture, mining and tourism which connects business to skills and customers.
“Many sectors simply cannot operate effectively in regional areas without connections to bigger centres and metropolitan capitals.
“This investment aligns with Regional Capitals’ advocacy pitch to ensure that regional aviation remains strong in our member cities as the Rex administration is worked through.
“The announcement shows the Federal Government is acting to protect this essential service for regional and remote Australia and understands the importance of air services to local economies,” Cr Carter said.
Media Release
Image courtesy of Robert Myers
