Transport workers worried for the future of the regional aviation industry

Transport workers are worried about the future of the regional aviation industry, after airline Rex requested an immediate halt to trading.

Transcript

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.