REX BAILOUT OR BUYER?
A potential government bailout for the troubled airline Rex could require a government representative taking a seat on the company’s board, the AAP is quoting experts as saying this morning, while the AFR claims any potential buyer for Regional Express would need to be willing to invest significantly to update the airline’s ageing fleet.
Rex appointed Ernst & Young Australia as administrators this week and halted its domestic 737 services, while regional services remain operational. According to Transport Minister Catherine King, the government is working with administrators to ensure Rex’s “absolutely vital” regional presence continues, with Helen Bird of Swinburne University claiming any government involvement, in particular funding, could require conditions allowing some control in the boardroom.
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