Gov’t grants for airports stung by REX administration

By Andrew Curran.

The Australian Government is making AUD5 million (USD3.5 million) available to regional and remote airports left out of pocket after Regional Express (REX) filed for voluntary administration in mid-2024.

The government said the grants will help remedy the financial impact of unpaid landing fees and other outstanding airport charges.

Rex flies to 53 airports across six Australian states. Aside from the capital city airports and some larger regional airports such as Cairns (CNS), Townsville (TSV), and Mount Isa (ISA), nearly all are owned and operated by local councils. Many run at a loss.

Airports left out of pocket by REX's administration

When REX called time and filed for administration, it owed around AUD500 million (USD351.5 million) to more than 4,800 creditors, including many regional and remote airports, who became unsecured creditors. 

REX’s smallest unpaid airport debt was around AUD45,000 (USD31,600). The largest was over AUD650,000 (USD456,600).

Dubbo Regional Council, owner and operator of Dubbo Airport (DBO), was left with the top debt of more than AUD658,000 (USD462,000). Wagga Wagga City Council, owner and operator of Wagga Wagga Airport (WGA), found itself AUD210,000 (USD147,500) out of pocket. Neighbouring Albury Council holds over AUD173,000 (USD121,500) in unpaid bills.

Administrators Ernst and Young sold off various Rex entities before finding a buyer of REX’s core regional aviation business. The US-based buyer, Air T, committed to maintaining REX’s regional services but did not agree to repay unsecured creditors.

Some airports stung twice

Many local councils were similarly stung by the collapse of Bonza in 2024. Some, like Wagga Wagga, Albury, and Mildura (MQL) were served by both carriers and short-changed twice over.

Mildura Airport, around 550 kilometres northwest of Melbourne, said in a November 2025 submission to the ongoing Australian Government Senate Inquiry into the State of Australia’s regional aviation sector, that it runs at an annual loss and carries a significant debt for its capital works.

It submission said that in the 12 months to June 30, 2025, the airport generated revenues of AUD7,451,394 (USD5,233,225). However, Mildura Airport accrued expenses of AUD7,839,528 (USD5,505,818), leading to a loss of AUD388,134 (USD272,592).

The council’s submission, along with other submissions by other regional and remote airport owners and operators, including Albany City Council (which was owed over AUD450,000 (USD316,000) by Regional Express when it collapsed), calls for greater government support, minimum service guarantees, and policy frameworks to better protect regional aviation.

Australian Government Transport Minister Catherine King says the AUD5 million pot shows the government’s commitment to regional aviation.   

“REX plays an essential role in connecting regional Australian communities and this will ensure those services can continue,” King said in a February 4 statement. “I encourage councils and airports affected to apply for this support programme, ensuring the maintenance of critical aviation links across our country.”

Airports Association welcomes government grants

The Australian Government provided financial support to Regional Express during its administration period to ensure regional air services continued. In the process, it became the airline’s biggest secured creditor. As a result, the government was closely involved in the sale process, negotiating a deal with Air T that involved a new commercial loan of AUD60 million (USD42 million) and the restructuring of AUD108 (USD76 million) million in existing debt.

“These funding applications are an important step for regional and remote airports that carried financial risk to help keep essential air services operating during a highly uncertain period,” said Australian Airports Association CEO Simon Westaway yesterday.

“Throughout REX’s administration, airports continued to provide critical infrastructure and services, carrying unpaid charges to keep essential air links operating,” he added. “This announcement follows strong advocacy by the AAA to ensure regional and remote airports affected by the REX administration were not left behind, and we thank Minister Catherine King for her ongoing engagement on this issue.”

Applications for the grants are open and close on March 17, 2026.

Photo: Aero South Pacific.

Contact the writer: andrew@aerosouthpacific.com