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Albanian government steps in to shore up beleaguered Rex Airlines with m funding during voluntary administration
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Albanian government steps in to shore up beleaguered Rex Airlines with $80m funding during voluntary administration

The Albanian government has offered to shore up Rex Airlines with $80 million in funding following calls for intervention after the beleaguered airline went into voluntary administration in July.

More than 600 jobs were lost when the incident unfolded. fear remote communities Those who depended on the airline would not be able to access essential services in the capitals.

The support announced on Tuesday will keep Rex’s regional routes running as company administrators apply to extend voluntary administration until June next year, Transport Minister Catherine King and Workplace Relations Minister Murray Watt said.

Additionally, former employees will have early access to the Fair Entitlements Guarantee (FEG) during the voluntary administration process.

“This will ensure that extending the voluntary administration period does not delay the ability of these employees to access their rights,” the ministers said.

“In addition, the administrators of Rex and the main secured creditor, PAG, have advised that they will pay the entitlements of former employees of the regional company who have been made redundant during the period of voluntary administration.

“The Government will also continue to guarantee ticket sales made during the voluntary administration until June 30, 2025, should the Federal Court accept the extension application.

“The guarantee has been effective so far and has not yet been used as flight bookings are holding up well.”

Ms King and Mr Watt described the funding as “another demonstration of our commitment to maintaining access to regional aviation, recognizing the important role Rex plays in regional communities across Australia”.

“My department continues to meet regularly with management as they work to implement a strategy for the regional aviation business.

“I encourage passengers to continue supporting Rex’s regional operations.”

came later a new call for the government to intervene and save the embattled airline with a poll last month revealing 71 per cent of Australians wanted Labor to intervene to ensure Rex could continue serving regional routes across the country.

Ten per cent of the 1,044 respondents who took part in the survey did not believe Labor should intervene to save Australia’s third largest airline, while 19 per cent of people were undecided.

Albanese previously noted that he would “examine any proposals” to secure Rex’s future, but criticized the airline for expanding its operations to include major city routes in early 2021.

“There are a variety of issues related to Rex. One is that a regional airline made a decision to invest in routes it had not previously flown,” Albanese told reporters in August.

“Sydney to Melbourne is not a regional route. It is one of the 10 best routes in the world and at various stages it has literally been number one in the world.”