The TWU has vowed to work again with Deloitte administrators to attempt to rescue Rex Airlines as it did to get Virgin Australia flying again, but warns aviation can’t recover from its current cycle of crises without independent oversight from a Safe and Secure Skies Commission.
Another 2,000 aviation employees have been thrown into limbo following reports of a trading halt at Rex Airlines. An estimated 25,000 aviation workers left the industry during the pandemic. Last month, 323 Bonza staff lost their jobs following the budget regional carrier’s collapse.
A vicious bidding war between Qantas and Rex erupted in 2021, after the lower-cost carrier dropped prices on the lucrative Sydney-Melbourne market. Rex accused Qantas of ‘capacity dumping’, slot hoarding, and moving in on Rex’s regional routes to squeeze out competition.
Recently, Qantas CEO Vanessa Hudson said there’s no room for more domestic airlines in Australia, with a smaller population hampering “the economics of being a viable airline”. Qantas announced nearly $4 billion underlying profit in the 18 months to March 2024.
Last month, the TWU, ASU and the whole union movement passed a motion on the need for a Safe and Secure Skies Commission to provide regulatory oversight, stability and binding standards for aviation.
TWU ³Ô¹ÏÍøÕ¾ Secretary Michael Kaine said:
“Like Bonza, Rex was another airline attempting to do right by the Australian public, keeping regional communities connected and driving down fares on popular routes. Following complaints against Qantas of capacity dumping, slot hoarding and a bidding war in regional Australia, Rex has now become another victim of an unregulated aviation market.
“The TWU worked with Deloitte to get Virgin Australia back in the air and will work just as hard with them again to try to rescue Rex Airlines. Despite multibillion-dollar Qantas claiming there’s no room for competition, we know healthy competition is the only remedy for an industry in crisis.
“Aviation has suffered the colossal loss of skill and experience with thousands of staff gone and good, secure jobs diminished. Workers, passengers, and smaller, regional carriers have shouldered the burden of aggressive competition, the systematic degradation of pay and conditions under Alan Joyce, and the lack of a market stabiliser. We need a Safe and Secure Skies Commission to ensure the needs of the community are met by a strong, stable aviation industry.”
