Transport workers are worried about the future of the regional aviation industry, after airline Rex requested an immediate halt to trading.
Category
📺
TVTranscript
00:00REX's future is in doubt after news broke yesterday afternoon of a share trading halt.
00:07This was announced on the ASX and it comes after reports in a business news column that
00:13the company called in a team of turnaround consultants from Deloitte to help the company
00:19out.
00:20Now, the ABC has reached out to REX to try and get confirmation about this news.
00:25However, REX has remained rather tight-lipped over the situation, saying that an announcement
00:30is pending and that it would be inappropriate to comment before that announcement is released.
00:36Now, the company is no stranger to turbulent times when it comes to their business and
00:41financial dealings.
00:43And we've got some numbers to pull up for you now.
00:46In February of this year, REX reported a $3.2 million loss in the six months to December
00:522023.
00:54That was compared to a $16.5 million loss in the six months prior.
01:00There's also been a bit of a shakeup in the boardroom with the former executive chair
01:04leaving the company.
01:06We also know that the Transport Workers Union are demanding answers.
01:10They say 2,000 workers jobs are at risk and that those people deserve certainty.
01:16The union is also calling for a standalone regulator for the aviation industry in Australia
01:23with other airlines like Bonza and Virgin Australia also facing difficulty in recent
01:28years.
01:29You know, this is an industry that seems to be constantly in crisis.
01:34So we've been saying for a long time now that we really need a standalone regulator in place,
01:41a regulator that can look at this industry holistically, proactively.
01:44Regional Australians will also be watching this saga unfold very closely.
01:49We know that REX services a lot of those routes in the regional communities that many
01:54other airlines don't.
01:55So if REX does cease its operations, this will have quite the ripple effect on those
02:00communities.
02:01Now this is something that the Prime Minister says he is concerned about, but that he is
02:05keeping a very close eye on.
02:07We are concerned about REX.
02:09It's an important regional airline.
02:11REX as a regional airline, of course, provides important links with regional communities
02:19and particularly between capital cities and regional communities is important for those
02:25local economies.
02:27The trading halt will remain in place until Wednesday or until REX releases its next statement.