Quick on the heels of Bonza Aviation’s demise, Rex Airlines’ holding company requested an ASX trading halt yesterday amid shareholder infighting and a mountain of debt. What’s the scam?
The scam is that, once again, the government’s two-airline non-policy policy makes it all too hard to compete on level terms with Qantas and Virgin in Australia. Until international airlines with real financial muscle are allowed to compete on the major domestic routes, the oligopoly will remain, with prices high and services low.
The latest result announcement from Regional Express Holding Ltd (ASX:REX) shows a loss of $30.9m on revenue of $353.3m for the half-year to 31 December 2023. MWM understands that the total liabilities of $580m include a convertible loan from one of Rex’s major shareholders, PAG Asia Capital, a private equity firm.
The trading halt was requested after unconfirmed reports the company was engaging restructuring experts to reacpitalise the airline.
Should Rex not manage to raise additional capital or be bailed out by the government, it would be yet another addition to Australian Airlines’ failures over the last three decades.
Bonza’s demise. Playing football on the edge of Putin’s business matrix
Kim Wingerei is a businessman turned writer and commentator. He is passionate about free speech, human rights, democracy and the politics of change. Originally from Norway, Kim has lived in Australia for 30 years. Author of ‘Why Democracy is Broken – A Blueprint for Change’.