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Rex Airlines owes half a million dollars to Australian municipalities

Rex Airlines owes half a million dollars to Australian municipalities

Bankrupt airline Rex owes more than 800,000 Australian dollars (more than 540,000 dollars or 49.5 million rubles) to two municipalities in Western Australia, the regional newspaper The West writes on August 30.

At the end of July, Australian airline Regional Express, better known as Rex, suspended flights with its Boeing 737 between the country’s capitals. Regional flights on small aircraft continued while management looked for a buyer. To date, management of the company has passed to Ernst and Young.

The administration of the Esperance district in Western Australia told the ABC television and radio company that the collapsed airline owed them 440,587 Australian dollars (27.5 million rubles), and the administration of the city of Albany said it owed them 456 thousand Australian dollars (28.5 million rubles) as landing fees and other services. At the same time, the total amount of the company’s debts amounts to about 500 million Australian dollars (31 billion rubles).

Local authorities are now pushing for additional protections for future airline deals, similar to those in place in Kalgoorlie-Boulder after Virgin Australia filed for bankruptcy in 2020. City officials were owed more than A$920,000 (57 million rubles), but only A$49,000 (3.05 million rubles) of that was returned.

Source: Rossa Primavera

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