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The Guardian - AU
The Guardian - AU
Business
Elias Visontay Transport and urban affairs reporter

Rex airlines enters voluntary administration with all flights between capital cities grounded

Rex plane
Rex airlines has entered voluntary administration but its regional operations are unaffected and will continue to operate. Photograph: Mick Tsikas/AAP

All Rex flights between capital cities have been grounded and the airline has entered voluntary administration just hours after the Albanese government suggested it would intervene to ensure the nation’s third-largest carrier didn’t collapse.

Late on Tuesday, EY – formerly known as Ernst & Young – announced it had been appointed as administrators of the company, and that the airline’s Boeing 737 operations between capital cities such as Sydney, Melbourne and Brisbane had been grounded, with Virgin Australia stepping in to offer impacted passengers rebooking “free of charge”.

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