Total
0
Shares
Regional Express (ASX:REX) shuts down all Queensland services
Sourced: Simple Flying
  • Rural airline Regional Express (REX) will shut down all its Queensland services from April 1
  • Approximately 25 regional airports across Cairns, Townsville and Mount Isa and Richmond will see flights suspended
  • This is due to decreased sales and the strict border controls to mitigate COVID-19
  • The company went on to add that "not a single cent has been distributed" from the $300 million pledged by the Federal Government to support regional airlines and communities
  • REX's share price has dropped 10.6 per cent and shares are trading for 59 cents each

Rural airline Regional Express (REX) will shut down all its Queensland services from April 1.

Approximately 25 regional Queensland airports across Cairns, Mount Isa, Townsville, and Richmond will have services suspended.

Just last week, the company announced it would shut all of its regular public transport (RPT) services from April 6 in all Australian states except Queensland.

Services in Queensland remained open at the time, as REX services are underwritten by the Queensland State Government.

The company also announced that its Ambulance Victoria air ambulance services, freight services, charter contracts with mining companies, and pilot training in Victoria and NSW will not be impacted.

Today however, REX announced it would be temporarily shutting down all Queensland RPT services due to a decline in passengers and strict border control measures.

Government Assistance

Despite the Federal Government pledging $300 million to regional airlines and communities, REX has stated that "no concrete details have been forthcoming and more importantly, not a single cent has been disbursed."

"Further, the Federal Government is only funding a minimum essential service of one return weekly flight per route, and this reduced schedule approach was rejected by the Queensland State Government," the company added.

With the company running out of cash, and no foreseeable workable solution to be reached anytime soon, REX has suspended all services and declared a Force Majeure Event, which means that unforeseeable circumstances have prevented the company's contract from being fulfilled.

REX's share price has dropped 10.6 per cent and shares are trading for 59 cents each at 2:27 pm AEDT.


Subscribe


REX by the numbers
More From The Market Herald
Vmoto (ASX:VMT) to ship 2000 scooters to the Netherlands

" Vmoto (ASX:VMT) delivered strong operational growth during March quarter

Vmoto (VMT) has released its quarterly report for the March quarter, which has outlined some strong operational growth.
Vmoto (ASX:VMT) - Managing Director, Charles Chen - The Market Herald

" Vmoto (ASX:VMT) raises $3.95M in oversubscribed share purchase plan

Electric scooter manufacturer Vmoto (VMT) has raised nearly $4 million in an oversubscribed share purchase plan — four times the amount it was
- Queensland Treasurer, Cameron Dick - The Market Herald

" Queensland Government to make bid for Virgin Australia (ASX:VAH)

Queensland’s new Treasurer, Cameron Dick, has announced plans for the State Government to bid for Virgin Australia (VAH).
Eclipx Group (ASX:ECX) - CEO, Julian Russell - The Market Herald

" Eclipx (ASX:ECX) sells CarLoans.com and Georgie to Firstmac

Vehicle leaser Eclipx Group (ECX) has announced the sale of CarLoans.com and Georgie to Firstmac Limited.