By Stuart Condie
SYDNEY--Australia's government is prepared to bring the country's third-largest airline under state ownership if insolvency specialists can't find a buyer for the troubled domestic carrier.
Regional Express, which flies to destinations not serviced by larger carriers such as Qantas, entered voluntary administration in July. Rex, at it is known locally, can be the only option for so-called fly-in, fly-out workers to remote mining projects.
In November, the government provided up to 80 million Australian dollars, or about US$50.4 million, in financing to help pay staff and keep Rex flying. Last month, it acquired A$50 million in debt from Rex's existing creditors.
"When markets fail or struggle to deliver for regional communities, the government has a role to ensure people do not miss out on opportunities, education and critical connections," Australia's transport minister, Catherine King, said.
The government said it will not bid for Rex, but will step in it administrator EY cannot find a buyer.
Rex had a market capitalization of about A$64 million when it entered administration. Its shares fell more than 75% since December 2020.
Write to Stuart Condie at stuart.condie@wsj.com
(END) Dow Jones Newswires
February 11, 2025 18:43 ET (23:43 GMT)
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