Remote Aboriginal communities are concerned they could be left stranded after Rex Airlines entered voluntary administration.
The airline halted trading on Monday before appointing administrators on Tuesday night, confirming the loss of hundreds of jobs after an unsuccessful attempt to take on Qantas and Virgin by flying between Australia’s capital cities.
Administrators EY have grounded Rex’s fleet of Boeing 737s and discontinued flights to capital cities, but say they hope to continue flying to regional areas on smaller planes.
An announcement with more details will be made over the next few days.
Halt to regional flights would be ‘catastrophic’
Former Mornington Island mayor Kyle Yanner says Rex provides a vital service to his community in the Gulf of Carpentaria, and it would be catastrophic if regional flights were to stop.
“We have a lot of FIFO workers, and if this airline crashes, we will then lose out on vital services to the community, if not essential services, like our psychologists, our doctors, our nurses would not be able to fly in and out,” Mr Yanner said.
“We’ve got a few business holders, and they rely solely on outside people coming in. If they stop, then these little independent businesses fall over.
“If we can’t fly in contractors … you know, we don’t get buildings built. Everything comes to a halt.”
Mr Yanner said he was especially keen to see the continuation of the Local Fare Scheme, a Queensland government program that provides subsidised flights for people living in remote communities in the Torres Strait and Cape York regions.
In many cases, he said, subsidised flights through Rex are the only way members of his community can reach regional centres like Cairns or Mt Isa.
“[If flights were cancelled] everyone would have to buy a boat each, and I don’t think many people would be able to afford a charter plane,” he said.
Unions and the Greens are calling on the Albanese government to take a stake in the airline to prevent further job losses and ensure regional flights can continue.
