What does voluntary administration mean for Rex Flyer members?

With Regional Express (Rex) now in voluntary administration, the airline has been quick to tweak its domestic flying. Effective immediately, all Rex Boeing 737 flights are cancelled. Every aircraft in Rex’s Boeing 737 fleet has also been grounded, confirms EY Australia, the company’s appointed administrators. Interestingly though, Rex Flyer – operating as a separate entity with a different ACN – is not presently in voluntary administration.

Rex flights on Embraer aircraft are also currently suspended from sale. This includes the new Perth-Adelaide route operated by the Embraer E190.

The situation is rapidly evolving following an initial trading halt on the ASX earlier this week. The long-term prospects and viability of Rex’s overall business are set to be examined during this administration process. But for now, ticketed Rex passengers should take note of a few things. Particularly so, members of Rex Flyer.

Regional Saab 340 routes are still operating during administration

Through a statement to media, EY Australia confirms that Rex’s turboprop flights are ‘currently unaffected by the administration and will continue to operate. Prepaid ticket holders will continue to have their tickets honoured by the Rex Group on regional routes.’

Rex’s website confirms that ‘regional flights are unaffected by the administration and will continue to operate as normal. Customers can continue to make bookings at rex.com.au or via their travel agent.’

There’s an early hint that the airline’s regional flights show some promise of surviving administration. EY advises that ‘Rex and Virgin Australia are also exploring opportunities to support regional customers.’ This could include ‘Virgin Australia selling Rex’s regional services through codeshare or interline arrangements, and making Velocity Frequent Flyer benefits available to Rex’s regional customers.’

It’s not clear whether there’d potentially be an integration with Rex Flyer, if a successful restructure were to come from the administration process. In any case, for now, here’s a look at Rex’s network of turboprop routes:

Rex’s domestic Boeing 737s sit grounded during administration

Rex confirms that ‘flights between major airports have been cancelled, with the Rex Group’s domestic fleet of Boeing 737 aircraft … all grounded.’ However, travellers with existing bookings are eligible for rebooking at no additional cost.

‘If you hold a prepaid ticket for future travel on any of these routes, you can transfer your Rex booking to a similar Virgin Australia flight,’ advises the airline. ‘Virgin Australia has made an offer to honour all prepaid tickets for the Rex Group’s direct services between domestic capital cities, at no additional cost to passengers.’ It is likely that this measure applies to flights booked using Rex Flyer points prior to Rex’s entry into voluntary administration.

‘We are not offering refunds, but an agreement has been reached with Virgin Australia.’

You’ll need to contact Virgin Australia to arrange rebooking by no later than 5pm on 14 August 2024. ‘If you don’t rebook your affected Rex domestic flight by Wednesday 14 August 2024, the booking cannot be honoured and will be void.’

Those booked to travel within the next 48 hours should call Virgin Australia on 13 67 89. Those with Rex jet bookings from this weekend onwards should instead use Virgin Australia’s online rebooking form.

Travellers who had booked refundable Rex fares and no longer wish to travel at all should contact the administrators, EY Australia, via [email protected]. This would likely require the customer to formally register as an unsecured creditor of the airline. Alternatively, for fares paid by credit card, a customer’s credit card issuer may be able to submit a chargeback request for services paid but not rendered.

Qantas is also offering alternative flights for stranded Rex passengers

While Virgin Australia was first to act on Tuesday night with an offer to reaccommodate travellers, the Qantas Group has quickly followed suit. Rex passengers on the airline’s cancelled jet routes can contact either Qantas or Jetstar to arrange a flight at no further cost.

The Qantas Group advises that these arrangements are possible ‘where we have seats available’, and on routes where a Qantas Group airline overlaps with a Rex jet flight. Virgin Australia’s rebooking policy is similar.

To request a rebooking with Qantas, call 13 13 13 and have your Rex booking details handy. For Jetstar, call 13 15 38 or use the airline’s Live Chat feature.

Qantas Group has also set up a dedicated channel for Rex employees to express their interest in working for Qantas or Jetstar. Virgin Australia has done the same. In a post on social media, Virgin Australia also advises that it’s in the process of securing leases for three of the Boeing 737 jets that Rex had leased. ‘These aircraft will be used to support Virgin Australia’s existing published schedules,’ the post reads.

Is Rex Flyer in administration?

Currently, a number of Rex entities are in voluntary administration. These include:

• Regional Express Holdings Limited (ACN 099 547 270)
• Regional Express Pty Limited (ACN 101 325 642)
• Rex Airlines Pty Ltd (ACN 642 400 048)
• Rex Investment Holdings Pty Limited (ACN 101 317 677)
• Air Partners Pty Ltd ACN (065 221 356)

Interestingly though, Rex Flyer operates as its own entity. That’s Rex Flyer Pty Ltd (ACN 671 816 621). At the time of writing, this company is not in voluntary administration. But with administrators appointed to the program’s parent airline, Rex, what does that mean for Rex Flyer members?

Rex says that ‘Rex Flyer frequent flyer points will be frozen during the administration. You will not be able to use or accrue points during the administration period.’ Previously, it was only possible to earn and redeem Rex points on Rex flights.

‘In the event of a successful restructure of the business accrued points may become available again. Further information will be provided in due course.’

Given the suspension of the ability to earn and redeem points, Rex Flyer status privileges are unlikely to be available for now. Point Hacks has contacted Rex’s administrators at EY Australia to confirm whether the Rex Lounge facilities in Sydney, Melbourne and Adelaide will remain open during administration.

It’s been a tumultuous few years for Rex…

Rex can trace its beginnings to 2002, with the merger of two existing regional carriers. These were Hazelton Airlines and Kendell Airlines, which had both been operating as subsidiaries of Ansett Australia.

More recently, Rex went big on the domestic front. It aimed to take on Australia’s existing airline groups on their home turf: jet flights between major cities. Until that point, Rex had largely kept its head down. It’d been flying turboprop planes on regional routes and between destinations with otherwise limited demand.

But the move towards a Boeing 737 fleet marked a new chapter. In a short space of time, Rex entered the jet age. With it, it introduced a domestic Business Class experience. Ironically, at first, Rex’s jet aircraft were formerly of the Virgin Australia fleet. These planes had previously been on lease by Virgin Australia, with those leases wound up during Virgin’s own voluntary administration process.

With the same planes as its competition – and in the case of Virgin, the same exact seats – Rex was on fire. It went from ‘no-frills’ to ‘fancier’, while retaining its image as a ‘country’, rather than ‘big city’. It had plans for new lounges, having signed the lease on a new and much larger space within Adelaide Airport. More recently, it launched a frequent flyer program and subsequently, allowing customers to redeem points on flights.

Rex inked an interline partnership with SkyTeam Alliance founding member and former Virgin Australia partner, Delta Air Lines. Rex even got SkyTeam’s attention, with the CEO of SkyTeam hinting that the Alliance would consider a new category of airline membership to scoop up more partners in its under-connected regions.

The airline gave free snacks and checked luggage on all tickets in Economy, where the airlines competing at a similar price point did not. Rex even dipped its toe into the lucrative transcon market. For now, though, Rex’s jet routes sit grounded. The airline’s ambitions are back on hold. Surviving the current storm will be priority one.

Also read: Interview with Rex Airlines executive, John Sharp AO

Imagery courtesy of Rex.