[Peetwo]

WTF??? Airbus Albo's Govt considers buying REX?? - 

To begin with this desperate Albo Govt thought bubble, I start with the former TWU Secretary and now Labor Senator Tony Sheldon:

Then the debate and counter arguments, via the Oz...  

Rival regional airline slams PM’s promise to buy Rex as ‘massive waste of taxpayer money’

Regional airlines shut out of discussions about Rex’s future, have again called for the Albanese government to work with them to avoid an outcome where the failed carrier is nationalised.

Seven months after the airline formerly known as Regional Express was taken into administration, no buyer has been found, prompting Anthony Albanese to promise a “potential Commonwealth acquisition” to ensure crucial air connections are maintained.

The declaration has been welcomed by the Transport Workers Union and Australian Tourism Export Council, and given cautious support by travel agents, who are owed $11.5m by Rex.

But opposition transport spokeswoman Bridget McKenzie said it was a disgrace the government was now planning to nationalise Rex, without even bothering to consult other regional airlines who were keen to play their part in a plan to maintain critical connections.

Despite seeking a meeting with Transport Minister Catherine King for months, the Regional Aviation Association of Australia has been denied access.

Senator McKenzie said it seemed the only stakeholder the government was interested in consulting was TWU national secretary Michael Kaine.

“There are 40 airline businesses around the regions, servicing regional communities on 21 of Rex’s (46) existing routes, and they’re serious aviation players who have capacity to grow and expand and they have been locked out of this process,” said Senator McKenzie.

“In fact, the minister even before this started hadn’t met with them which I think says everything about who this minister and who this government listens to when it comes to aviation.”

Hinterland Aviation chief executive Andrew Clair was also angered by the government’s move, which he branded a “waste of taxpayers’ money”.

He said the $130m the government had already spent propping up Rex to date would have been better invested into other regional airlines to help them expand.

“Propping up Rex’s outdated business model doesn’t strengthen regional aviation — it delays the inevitable collapse while sidelining the airlines actually building the future,” said Mr Clair.

“If the government truly cares about regional connectivity, it needs to invest in the next generation of aviation — not the last.”

Regional Aviation Association of Australia chief executive Rob Walker said they remained ready to work with administrators on the upcoming sale process, and hoped it would provide more opportunity for other airlines to contribute to a positive outcome.

“We strongly share the view that regional and remote communities should have access to services, and our members remain committed to providing those services,” Mr Walker said.

Virgin Australia, which supported Rex customers when the airline was placed into administration in July, said it backed the government’s efforts “to find a new private sector investor”.

However the airline stopped short of backing government ownership.

The Australian Airports Association was hopeful a market-led solution could be found in the four-and-a-half months left of the administration and called for more details on how Rex might operate under government ownership.

AAA chief executive Simon Westaway said many of their members had taken on significant debts to support Rex’s operations in regional areas and were keen to see an outcome.

“We urge the Albanese Government to continue working collaboratively with our airportcommunity to secure a viable and long-term solution for these critical services,” Mr Westaway said.

Australian Travel Industry Association chief Dean Long said they supported government ownership of Rex “as a last resort” and members expected outstanding debts to be repaid if that occurred.

He said a number of airports were also out of pocket, and “any nationalisation of the airline must see these debts repaid as a priority”.

“This can’t just be about sending money to international creditors,” said Mr Long, referring to the government’s purchase of $50m of debt owed to PAG Asia Capital.

The Transport Workers Union was firmly in favour of the government’s offer, declaring it a “huge moment for the aviation industry” and one that would come as a relief to workers and passengers.

“This is a vital step towards a future where aviation actually works for the people of this country, not its overpaid executives,” said Mr Kaine.

“It is hugely promising to see the federal government investing in the future of regional Australia and the aviation industry and making sure that Rex can keep flying its critical routes long-term.”

ATEC managing director Peter Shelley was also in favour, calling it an important step towards securing reliable and affordable domestic air services.

demise, and see where government funding could assist to make that happen.

“The worst possible outcome would be for these 40 existing businesses employing over 10,000 staff to be competing against a government owned enterprise, able to outgun them on every runway. That would be the worst possible outcome,” she said.

“These are not insignificant businesses. I’m talking Link, Pelican, Nexus, Sharp Air, Skytrans, Air North, Hinterland, serious aviation players who are running sustainable aviation businesses right now.”

Mr Clair said there was a reason no buyer had been found for Rex, and it wasn’t because flying regional routes was unprofitable.

“It’s because its fleet is outdated, unsupported and financially unsalvageable,” he said.

“Rex’s Saab 340s are relics. Buying Rex is like purchasing a 10-year-old racehorse and expecting it to compete for another decade.”

Of Rex’s 57 Saabs, 29 are currently parked at airports awaiting parts and maintenance.

Administrator EY has previously revealed an $80m loan from the federal government was being used for “engineering expertise” to try to get more of the aircraft back into service.

MTF...P2