Rex Airlines go belly up, the Virgin-Qantas duopoly reigns supreme
BY: Kartya Vucetic
On Tuesday night, Rex Airlines, along with other subsidiaries under Regional Express Holdings Ltd, entered voluntary administration. As the third largest airline carrier in Australia, the decision comes as a shock and disappointment to many.
The airline has partnered with EY to perform the administration. By Tuesday night, all 737 Boeing domestic flights between major cities were cancelled. The decision will also see 360 people at Rex Airlines and 250 at the Regional Express Division be made redundant. While Rex’s regional services currently continue to operate, many doubt the long-term viability of this commercial endeavour.
Despite Rex’s noble attempts, it’s clear that their intention to rival domestic competitors, Qantas and Virgin, on major city flights has ultimately failed. This decision comes not long after Rex accused the airline powerhouses of hoarding landing and takeoff slots, price gouging, and even poaching their regional pilots, according to Reuters.
This, alongside the collapse of Bonza Airlines earlier this year, should be regarded as a major red flag. It’s easy to get dismissive when numbers and business jargon are involved, but these types of closures almost always result in more expensive plane tickets. It highlights a failing market that isn’t adequately supported by relevant elected officials and a strengthening of an already powerful duopoly.
All I’ll say is book your flight to Bali now, kids, coz it’s not gonna get any cheaper any time soon.
