Government Supports Rex Airlines with $80 Million Amid Rising Domestic Airfares

The federal funding aims to sustain regional routes after Rex's collapse led to a significant increase in domestic flight prices.

Rex Airlines' exit from metropolitan routes has resulted in a 13.3% increase in average domestic airfares, according to the ACCC.
The absence of Rex has left Qantas and Virgin with a 98% market share, reducing competition and choice for consumers.
The federal government has provided an $80 million lifeline to keep Rex's regional operations running while it remains in administration.
Rex's withdrawal has led to fuller flights and a decrease in available seats on major city routes by 6%, exacerbating price hikes.
Qantas faces scrutiny over 'slot hoarding' practices at Sydney Airport, which may hinder competition and entry of new airlines.