Councils affected by Rex Airlines’ collapse will receive new Federal Government funding to support local aviation services.
The Australian Local Government Association (ALGA) and councils across Australia have welcomed the announcement of $5 million in grants following the airline’s voluntary administration in 2024, which left many councils carrying unpaid debts.
ALGA President, Mayor Matt Burnett, said the funding would assist councils that had been left with outstanding costs.
He said the Federal Government had responded to concerns raised by councils about the financial impacts of the airline’s collapse.
“Regional and remote communities rely on council-owned and operated aviation services,” Mayor Burnett said.
“These airports and aerodromes are critical to local economies, maintaining connections to friends and family and providing access to essential services.”
Mayor Burnett said increased funding through federal Financial Assistance Grants was also important in helping councils invest in aviation infrastructure.
“ALGA’s 2024 National State of the Assets report showed council-operated aviation facilities were valued at $3.6 billion, with around 12 per cent in poor condition.
“With limited rate bases, councils are under pressure to maintain and modernise their airports,” he said.
“Restoring Financial Assistance Grants to at least one per cent of Commonwealth taxation revenue would support councils to invest in the sustainable upkeep of critical regional aviation facilities.”
In August 2024, ALGA called for stronger action to ensure regional communities remained connected following Rex Airlines entering voluntary administration and convened a crisis meeting with impacted councils and Federal Local Government Minister Kristy McBain.
The Federal Government later announced it would acquire the airline, safeguarding regional aviation services and supporting regional and remote economies.
