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Australia’s third-biggest airline, Rex, has shut down and grounded all flights. But its two larger rivals, Qantas and Virgin Australia, are promising free flights to passengers holding tickets on the failed carrier.
Rex’s parent company, Regional Express Holdings, said it had “entered voluntary administration” and as a result the entire Rex domestic fleet of Boeing 737 aircraft air grounded.
The closedown affects many key internal flights within Australia, including flights from Sydney to Adelaide, Melbourne and Brisbane, and from Perth to Adelaide and Melbourne.
The airline said: “All Rex domestic flights between major cities are cancelled. Holders of affected tickets should not come to the airport for their flight until they have made alternative arrangements.
“We are not offering refunds.”
It added: “All regional planes are still flying as scheduled.”
Virgin Australia immediately offered Rex customers with an existing ticket on Rex the chance to rebook free of charge on one of the 13 routes common to both airlines.
Qantas is also giving away flights to Rex passengers. The carrier said: “This is a challenging day for our industry and we are sad to see Rex enter voluntary administration with the immediate suspension of its Boeing 737 operations.
“We know this will be a difficult period for many Rex customers and employees and we stand ready to assist.
“Rex customers impacted by cancelled flights due to the grounding of their domestic jet services can contact Qantas and Jetstar to be re-accommodated on the same route as their original booking at no charge, where we have seats available.”
Normally when an airline fails, rivals will offer “rescue fares” at marginal cost. But the two big Australian carriers are making no charge.
The shutdown of Rex follows the collapse earlier this year of a budget airline, Bonza.
All frequent flyer points have been frozen. “You will not be able to use or accrue points during the administration period,” Rex says.
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