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Posted: 2024-08-01 22:58:30

In short:

Hundreds of Rex Airlines employees have been officially let go from the regional carrier after being told the business was "not viable".

Workers were informed their jobs were at risk at an all-staff meeting on Wednesday.

What's next?

Administrators will hold their first creditors' meeting on August 9, when staff will receive an update on next steps.

Hundreds of Rex Airlines employees have been officially let go from the regional carrier after receiving formal notices of termination less than 48 hours after the company was placed into voluntary administration. 

The airline grounded its services between major cities on Tuesday, before later appointing administrators from consulting firm Ernst & Young (EY) to oversee the business.

On Wednesday, Rex Airlines employees were informed at an all-staff meeting with administrators that 610 jobs were at risk — 360 from its capital city operations, and another 250 from its regional and rural carrier, Regional Express.

Rex's regional services are continuing to operate.

Administrators told Rex Airlines staff on Wednesday that the business was not viable, and it could be weeks or months before they are paid their wages or receive redundancy packages.

A consultation process with staff began on Wednesday and employees began receiving termination notices that night.

It is understood 360 employees from its capital city operations have received the official notice after consultation ended on Wednesday, while the process continued for other parts of the business on Thursday.

Administrators are expected to provide an update on Friday.

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