{"id":15975,"date":"2024-07-31T10:24:29","date_gmt":"2024-07-31T07:24:29","guid":{"rendered":"https:\/\/aviation-news.info\/?p=15975"},"modified":"2024-07-31T10:24:29","modified_gmt":"2024-07-31T07:24:29","slug":"rex-airlines-staff-told-company-unable-to-pay-wages-or-redundancy-packages-as-350-workers-immediately-stood-down","status":"publish","type":"post","link":"https:\/\/aviation-news.info\/?p=15975","title":{"rendered":"Rex Airlines staff told company unable to pay wages or redundancy packages as 350 workers immediately stood down"},"content":{"rendered":"<p class=\"paragraph_paragraph___QITb\">Administrators overseeing the beleaguered Rex Airlines have told hundreds of employees they are unlikely to receive their wages or redundancy payouts for &#8220;months&#8221;, with services between capital cities being permanently cancelled.<\/p>\n<p class=\"paragraph_paragraph___QITb\">Rex Airlines was placed into voluntary administration late on Tuesday after it entered a trading halt on the Australian Securities Exchange (ASX) on Monday, following days of speculation about the airline&#8217;s future.<\/p>\n<p class=\"paragraph_paragraph___QITb\">Consultancy firm EY has been appointed to oversee the administration of the business, with administrators beginning their consultation with staff on Wednesday morning.<\/p>\n<aside class=\"ContentAlignment_marginBottom__4H_6E ContentAlignment_overflowAuto__c1_IL ContentAlignment_floatRight__nfR_t RelatedCard_relatedCard__ny1jQ\" data-component=\"RelatedCard\" data-uri=\"coremedia:\/\/article\/104164228\">\n<div class=\"CardBox_padding__wBj1R\" data-component=\"CardBox\">\n<h3 class=\"Typography_base__sj2RP Heading_heading__VGa5B CardHeading_cardHeading__FpsU_ RelatedCard_heading__UoYXS Typography_sizeMobile18__eJCIB Typography_sizeDesktop20___6qCS Typography_lineHeightMobile24__crkfh Typography_lineHeightDesktop24__Fh_y5 Typography_marginBottomMobileSmall__6wx7m Typography_marginBottomDesktopSmall__CboX4 Typography_black__9qnZ1 Typography_colourInherit__dfnUx Typography_normalise__u5o1s\" data-component=\"CardHeading\"><span class=\"KeyboardFocus_keyboardFocus__NLJda\" data-component=\"KeyboardFocus\">Rex Airlines enters into voluntary administration<\/span><\/h3>\n<div class=\"CardLayout_flex__QnHKw CardLayout_mobileColumn__cTGc9 CardLayout_tabletColumn__8f7vO CardLayout_desktopColumn__JY3rV\" data-component=\"CardLayout\">\n<div class=\"CardLayout_content__zgsBr\">\n<p class=\"Typography_base__sj2RP RelatedCard_synopsis__Z1uUh Typography_sizeMobile12__w_FPC Typography_lineHeightMobile24__crkfh Typography_bold__FqafP Typography_colourInherit__dfnUx\" data-component=\"Typography\">Rex Airlines, Australia&#8217;s largest regional and domestic airline operator, enters administration.<\/p>\n<\/div>\n<div class=\"CardLayout_imageContainer__wJ8ol CardLayout_mobileImageTop__uk0G9 CardLayout_tabletImageTop__BxHfE CardLayout_desktopImageTop__j7Nhk\">\n<div class=\"ContentImage_ratio__0yYeG\">\n<div class=\"AspectRatio_container__FC_XH\" data-component=\"AspectRatioContainer\"><img decoding=\"async\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\" src=\"https:\/\/live-production.wcms.abc-cdn.net.au\/767d97f6927f00ebe7af91f52d4cecf3?impolicy=wcms_crop_resize&amp;cropH=1125&amp;cropW=2000&amp;xPos=0&amp;yPos=104&amp;width=862&amp;height=485\" alt=\"A Rex Airlines plane stands on a runway.\" data-component=\"Image\" data-lazy=\"true\" \/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><a class=\"Link_link__5eL5m ScreenReaderOnly_srLinkHint__OysWz Link_showVisited__C1Fea Link_showFocus__ALyv2\" href=\"https:\/\/www.abc.net.au\/news\/2024-07-30\/rex-airlines-enters-voluntary-administration\/104155898\" data-component=\"Link\"><span class=\"RelatedCard_moreLink__4V2M9\"><span class=\"Typography_base__sj2RP Typography_sizeMobile14__u7TGe Typography_lineHeightMobile24__crkfh Typography_bold__FqafP Typography_colourInherit__dfnUx\" data-component=\"Typography\">Read more<\/span><\/span><\/a><\/div>\n<\/aside>\n<p class=\"paragraph_paragraph___QITb\">A recording of the meeting, sent to the ABC after it had concluded, heard administrators tell employees of Rex Airlines \u2014 the entity which operates the domestic routes between capital cities \u2014 that the business is in a &#8220;very perilous financial position and has access to almost no funds&#8221;.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;The business, to be very frank, is simply not viable, and administrators, after working very hard, have formed the view that [Rex Airlines] is not in a position to pay the wages of its employees moving forward,&#8221; administrator Justin Walsh told the meeting.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;Put simply, I guess the company is unable to meet the costs that it will need to incur to keep operating.<\/p>\n<div class=\"EmphasisedText_emphasisedText__h0tpv ContentAlignment_marginBottom__4H_6E ContentAlignment_overflowAuto__c1_IL\" data-component=\"EmphasisedText\">\n<p class=\"paragraph_paragraph___QITb\">&#8220;With the business not operating and unlikely, almost certainly, not able to recommence operations in the future, it&#8217;s unfortunately the administrators view that the position of each of the staff of the company on this call needs to become redundant.<\/p>\n<\/div>\n<p class=\"paragraph_paragraph___QITb\">&#8220;The simple fact that I have access to insufficient funds to pay your wages, leaves the administrators with no choice but to conduct that consultation process over a very short period.&#8221;<\/p>\n<p class=\"paragraph_paragraph___QITb\">Administrators have told Rex Airline employees the consultation period will end at 4pm on Wednesday \u2014 after which a decision will be made about the future of the airline and its staff.<\/p>\n<p class=\"paragraph_paragraph___QITb\">A total of 360 people with Rex Airlines will be made redundant, with an additional 250 employees to be made redundant in its Regional Express division \u2014 which operates flights in regional and rural Australia \u2014 despite it remaining operational.<\/p>\n<figure class=\"ArticleFigure_content__ueJhz ContentAlignment_marginBottom__4H_6E ContentAlignment_overflowAuto__c1_IL ContentAlignment_outdentDesktop__ijbiK ArticleFigure_outdent__tkMFK\" role=\"group\" data-component=\"ArticleFigure\" aria-labelledby=\"104164270\" data-uri=\"coremedia:\/\/imageproxy\/104164270\"><img decoding=\"async\" class=\"Image_image__5tFYM image_contentImage__9bwU6\" src=\"https:\/\/live-production.wcms.abc-cdn.net.au\/6fa864998bfc4ce4af951e49c3b21e57?impolicy=wcms_crop_resize&amp;cropH=1000&amp;cropW=1500&amp;xPos=0&amp;yPos=28&amp;width=862&amp;height=575\" sizes=\"(max-width: 543px) 543px,\" srcset=\"https:\/\/live-production.wcms.abc-cdn.net.au\/6fa864998bfc4ce4af951e49c3b21e57?impolicy=wcms_crop_resize&amp;cropH=1056&amp;cropW=1408&amp;xPos=46&amp;yPos=0&amp;width=862&amp;height=647 543w, https:\/\/live-production.wcms.abc-cdn.net.au\/6fa864998bfc4ce4af951e49c3b21e57?impolicy=wcms_crop_resize&amp;cropH=1000&amp;cropW=1500&amp;xPos=0&amp;yPos=28&amp;width=862&amp;height=575\" alt=\"A regional express airplane\" data-component=\"Image\" data-lazy=\"true\" \/><\/p>\n<div class=\"ArticleFigcaption_desktopCaption__HYT8t\">\n<div class=\"ArticleFigcaption_desktopCaption__HYT8t\"><\/div>\n<\/div><figcaption id=\"104164270\" class=\"Typography_base__sj2RP ArticleFigcaption_figcaption__tVy6G ArticleFigcaption_desktopFigcaption__LDNnU Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx Typography_letterSpacedSm__V8kil\" data-component=\"ArticleFigure__figcaption\">Rex&#8217;s regional flights are unaffected by the company entering administration.<span class=\"Typography_base__sj2RP ArticleFigcaption_citation__5osFt Typography_sizeMobile12__w_FPC Typography_lineHeightMobile24__crkfh Typography_regular__WeIG6 Typography_colourInherit__dfnUx Typography_letterSpacedSm__V8kil\" data-component=\"Byline\"><span class=\"Typography_base__sj2RP Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx Typography_letterSpacedSm__V8kil\" data-component=\"Text\">(AAP Image: James Gourley)<\/span><\/span><\/figcaption><\/figure>\n<p class=\"paragraph_paragraph___QITb\">The ABC understands around 350 employees with Rex Airlines have already been stood down.<\/p>\n<p class=\"paragraph_paragraph___QITb\">Asked when Rex will have the money to pay redundancy entitlements owed to staff, Mr Walsh said that process could take &#8220;months&#8221;.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;The answer is not presently, we&#8217;re working to find money, but certainly it does not have the capacity to do that today,&#8221; he said.<\/p>\n<div class=\"EmphasisedText_emphasisedText__h0tpv ContentAlignment_marginBottom__4H_6E ContentAlignment_overflowAuto__c1_IL\" data-component=\"EmphasisedText\">\n<p class=\"paragraph_paragraph___QITb\">&#8220;If things go very well, we&#8217;re talking weeks, probably months before that happens.&#8221;<\/p>\n<\/div>\n<p class=\"paragraph_paragraph___QITb\">On Wednesday afternoon, Virgin Australia said it has received around 180 expressions of interest from Rex Airlines staff looking for job opportunities.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;We&#8217;re actively opening up opportunities wherever we can,&#8221; Virgin Australia CEO Jayne Hrdlicka told RN Drive.<\/p>\n<h2 class=\"Typography_base__sj2RP Heading_heading__VGa5B Typography_sizeMobile20__NUDn4 Typography_sizeDesktop32__LR_G6 Typography_lineHeightMobile24__crkfh Typography_lineHeightDesktop40__BuoRf Typography_marginBottomMobileSmall__6wx7m Typography_marginBottomDesktopSmall__CboX4 Typography_black__9qnZ1 Typography_colourInherit__dfnUx Typography_normalise__u5o1s\" data-component=\"Heading\">Repossession of planes begins<\/h2>\n<p class=\"paragraph_paragraph___QITb\">Before entering administration, Rex Airlines operated 10 Boeing 737 aircraft on its inter-city routes, all of which were leased by the company.<\/p>\n<p class=\"paragraph_paragraph___QITb\">It added the 10th aircraft to its fleet in December 2023, before another 737 was returned to its lessor to be turned into a freight plane \u2014 however it was later turned into scrap \u2014 leaving Rex with nine operational Boeing planes.<\/p>\n<p class=\"paragraph_paragraph___QITb\">Administrators told employees on Wednesday that one of the planes has since been repossessed by its lessor.<\/p>\n<p class=\"paragraph_paragraph___QITb\">Rex&#8217;s remaining fleet of Boeing 737s were grounded on Tuesday, and the ABC has been told that lessors have since blocked access to the aircraft because the company cannot make its lease payments.<\/p>\n<p class=\"paragraph_paragraph___QITb\">At least one of Rex&#8217;s leased planes was been barricaded at Sydney Airport on Tuesday night.<\/p>\n<p class=\"paragraph_paragraph___QITb\">In a separate meeting on Wednesday with Rex Airlines staff, administrators told employees they expect remaining lessors to repossess the remaining aircraft in the coming days.<\/p>\n<figure class=\"ArticleFigure_content__ueJhz ContentAlignment_marginBottom__4H_6E ContentAlignment_overflowAuto__c1_IL ContentAlignment_outdentDesktop__ijbiK ArticleFigure_outdent__tkMFK\" role=\"group\" data-component=\"ArticleFigure\" aria-labelledby=\"104165950\" data-uri=\"coremedia:\/\/imageproxy\/104165950\"><img decoding=\"async\" class=\"Image_image__5tFYM image_contentImage__9bwU6\" src=\"https:\/\/live-production.wcms.abc-cdn.net.au\/3b62cdaf1ca06b4ad0a02d2b1c01793e?impolicy=wcms_crop_resize&amp;cropH=1000&amp;cropW=1500&amp;xPos=0&amp;yPos=63&amp;width=862&amp;height=575\" sizes=\"(max-width: 543px) 543px,\" srcset=\"https:\/\/live-production.wcms.abc-cdn.net.au\/3b62cdaf1ca06b4ad0a02d2b1c01793e?impolicy=wcms_crop_resize&amp;cropH=1125&amp;cropW=1500&amp;xPos=0&amp;yPos=0&amp;width=862&amp;height=647 543w, https:\/\/live-production.wcms.abc-cdn.net.au\/3b62cdaf1ca06b4ad0a02d2b1c01793e?impolicy=wcms_crop_resize&amp;cropH=1000&amp;cropW=1500&amp;xPos=0&amp;yPos=63&amp;width=862&amp;height=575\" alt=\"A plane on a tarmac at an airport with a concrete bollard in front of it.\" data-component=\"Image\" data-lazy=\"true\" \/><\/p>\n<div class=\"ArticleFigcaption_desktopCaption__HYT8t\">\n<div class=\"ArticleFigcaption_desktopCaption__HYT8t\"><\/div>\n<\/div><figcaption id=\"104165950\" class=\"Typography_base__sj2RP ArticleFigcaption_figcaption__tVy6G ArticleFigcaption_desktopFigcaption__LDNnU Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx Typography_letterSpacedSm__V8kil\" data-component=\"ArticleFigure__figcaption\">One of Rex Airlines&#8217; Boeing 737 aircraft was barricaded at Sydney Airport on Tuesday night.<span class=\"Typography_base__sj2RP ArticleFigcaption_citation__5osFt Typography_sizeMobile12__w_FPC Typography_lineHeightMobile24__crkfh Typography_regular__WeIG6 Typography_colourInherit__dfnUx Typography_letterSpacedSm__V8kil\" data-component=\"Byline\"><span class=\"Typography_base__sj2RP Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx Typography_letterSpacedSm__V8kil\" data-component=\"Text\">(Supplied)<\/span><\/span><\/figcaption><\/figure>\n<figure class=\"ArticleFigure_content__ueJhz ContentAlignment_marginBottom__4H_6E ContentAlignment_overflowAuto__c1_IL ContentAlignment_outdentDesktop__ijbiK ArticleFigure_outdent__tkMFK\" role=\"group\" data-component=\"ArticleFigure\" aria-labelledby=\"104165990\" data-uri=\"coremedia:\/\/imageproxy\/104165990\"><img decoding=\"async\" class=\"Image_image__5tFYM image_contentImage__9bwU6\" src=\"https:\/\/live-production.wcms.abc-cdn.net.au\/adcf13bcf56dce899064667266b291bb?impolicy=wcms_crop_resize&amp;cropH=1000&amp;cropW=1500&amp;xPos=0&amp;yPos=63&amp;width=862&amp;height=575\" sizes=\"(max-width: 543px) 543px,\" srcset=\"https:\/\/live-production.wcms.abc-cdn.net.au\/adcf13bcf56dce899064667266b291bb?impolicy=wcms_crop_resize&amp;cropH=1125&amp;cropW=1500&amp;xPos=0&amp;yPos=0&amp;width=862&amp;height=647 543w, https:\/\/live-production.wcms.abc-cdn.net.au\/adcf13bcf56dce899064667266b291bb?impolicy=wcms_crop_resize&amp;cropH=1000&amp;cropW=1500&amp;xPos=0&amp;yPos=63&amp;width=862&amp;height=575\" alt=\"The tail of a Rex Airlines Boeing 737 plane on a tarmac blocked by a concrete bollard.\" data-component=\"Image\" data-lazy=\"true\" \/><\/p>\n<div class=\"ArticleFigcaption_desktopCaption__HYT8t\">\n<div class=\"ArticleFigcaption_desktopCaption__HYT8t\"><\/div>\n<\/div><figcaption id=\"104165990\" class=\"Typography_base__sj2RP ArticleFigcaption_figcaption__tVy6G ArticleFigcaption_desktopFigcaption__LDNnU Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx Typography_letterSpacedSm__V8kil\" data-component=\"ArticleFigure__figcaption\">The Boeing 737 is unable to leave its position on the tarmac at Sydney Airport.<span class=\"Typography_base__sj2RP ArticleFigcaption_citation__5osFt Typography_sizeMobile12__w_FPC Typography_lineHeightMobile24__crkfh Typography_regular__WeIG6 Typography_colourInherit__dfnUx Typography_letterSpacedSm__V8kil\" data-component=\"Byline\"><span class=\"Typography_base__sj2RP Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx Typography_letterSpacedSm__V8kil\" data-component=\"Text\">(Supplied)<\/span><\/span><\/figcaption><\/figure>\n<p class=\"paragraph_paragraph___QITb\">Ms Hrdlicka confirmed that the airline was looking at acquiring three Boeing 737 aircraft from Rex&#8217;s leased fleet.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;We &#8216;re short three aircraft to serve the existing published schedules that we have in the next 18 months or so,&#8221; she told RN Drive.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;So we&#8217;re looking to bring in three aircraft, [which] will also give us a little bit of extra capacity in the event that the market grows faster than we&#8217;ve anticipated.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;That also gives us the ability to hire more of Rex&#8217;s employees and bring them back into well paying jobs and back into an industry that they love.&#8221;<\/p>\n<h2 class=\"Typography_base__sj2RP Heading_heading__VGa5B Typography_sizeMobile20__NUDn4 Typography_sizeDesktop32__LR_G6 Typography_lineHeightMobile24__crkfh Typography_lineHeightDesktop40__BuoRf Typography_marginBottomMobileSmall__6wx7m Typography_marginBottomDesktopSmall__CboX4 Typography_black__9qnZ1 Typography_colourInherit__dfnUx Typography_normalise__u5o1s\" data-component=\"Heading\">Staff furious at &#8216;no communication&#8217; from airline<\/h2>\n<p class=\"paragraph_paragraph___QITb\">Rex Airlines staff, unauthorised to speak publicly, have told the ABC that they learnt the company was being placed into administration by media reporting on Tuesday evening, and received communication from Virgin Australia at 11:17pm.<\/p>\n<p class=\"paragraph_paragraph___QITb\">Staff received a text message from their employer at 11:30pm on Tuesday advising that an &#8220;important business announcement&#8221; would be made on Wednesday and to not turn up to work.<\/p>\n<p>source: <a href=\"https:\/\/www.abc.net.au\/news\/2024-07-31\/rex-airlines-administration-staff-redundant-payments-unlikely\/104163516\">https:\/\/www.abc.net.au\/news\/2024-07-31\/rex-airlines-administration-staff-redundant-payments-unlikely\/104163516<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Administrators overseeing the beleaguered Rex Airlines have told hundreds of employees they are unlikely to receive their wages or redundancy payouts for &#8220;months&#8221;, with services between capital cities being permanently cancelled. Rex Airlines was placed into voluntary administration late on Tuesday after it entered a trading halt on the Australian Securities Exchange (ASX) on Monday, &hellip;<\/p>\n","protected":false},"author":1,"featured_media":15976,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpscppro_dont_share_socialmedia":null,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"default","_twitter_share_type":"default","_linkedin_share_type":"default","_pinterest_share_type":"default","_linkedin_share_type_page":"","_instagram_share_type":"default","_medium_share_type":"","_threads_share_type":"","_google_business_share_type":"","_selected_social_profile":null,"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[96,102],"tags":[],"class_list":["post-15975","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aviation-world","category-featured-en"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Rex Airlines staff told company unable to pay wages or redundancy packages as 350 workers immediately stood down - aviation news<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/aviation-news.info\/?p=15975\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rex Airlines staff told company unable to pay wages or redundancy packages as 350 workers immediately stood down\" \/>\n<meta property=\"og:description\" content=\"Administrators overseeing the beleaguered Rex Airlines have told hundreds of employees they are unlikely to receive their wages or redundancy payouts for &#8220;months&#8221;, with services between capital cities being permanently cancelled. 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