The Australian government will acquire Regional Express Holdings, trading as Rex - Regional Express (ZL, Wagga Wagga), should the carrier's administrator fail to find an alternative buyer. Prime Minister Anthony Albanese says it must ensure that scheduled passenger flights to regional and remote towns continue. Rex filed for voluntary administration in July 2024.

"The government is not a bidder in the upcoming sale process and would like to see a successful market-led outcome," a February 12 statement from the prime minister's office reads. "However, in the event there is no sale, the Albanese government will undertake necessary work, in consultation with relevant state governments, on contingency options, including preparations necessary for potential Commonwealth acquisition."

The announcement follows the government pumping AUD130 million Australian dollars (USD81.5 million) into the carrier to keep it operating while in administration. It has acquired AUD50 million (USD31.3 million) of debt from Rex’s largest creditor, PAGAC Regulus Holdings Limited, and provided a loan of up to AUD80 million (USD50 million) to keep flights operating until June 30, 2025. Rex currently flies to 53 airports around Australia. At many of these, it is the only operator.

The administrator, Ernst & Young, has so far failed to find a buyer for Rex's regional operations. It has closed the loss-making B737-800 operation, returned those aircraft to lessors, and sold some business units including Pel-Air Aviation (PFY, Sydney Kingsford Smith) and National Jet Express (JTE, Adelaide International). While the scheduled passenger services to regional and remote towns have generally turned a profit, the 57-strong fleet of Saab 340B(Plus) and Saab 340B types have an average age of 31.3 years and need replacement. The cost of doing so is proving a deterrent to buyers.

Should a prospective buyer enter into negotiations with Ernst & Young, Albanese says the government will discuss with them what support it can provide to maximise the prospect of a sale. "Terms of Commonwealth support will be subject to negotiation, but will be conditional on commitments by bidders to provide an ongoing, reasonable level of service to regional and remote communities, the need to provide value for money to taxpayers, and good governance," the statement adds.

Australia is due to hold a federal election by the end of May. The major opposition party is performing strongly, and Albanese's Labor Party faces the risk of losing office after just one term. Voting is compulsory, and the loss of air services to regional and remote towns is a sensitive political issue.