The Australian Travel Industry Association (ATIA) has lauded the Federal Government’s decision to guarantee all bookings for Rex Airlines amidst the airline’s voluntary administration, yet warns that this move, while crucial, only scratches the surface of a much deeper issue. As Rex Airlines grapples with its financial turmoil, the ripple effects are being felt far and wide, especially by the travel advisors and businesses that have been left to shoulder an astounding $11.5 million exposure.
Rex Airlines, a critical player in Australia’s regional aviation sector, entered voluntary administration, leaving thousands of passengers and numerous travel agencies uncertain. The government’s intervention to guarantee Rex bookings is a welcome relief, but according to ATIA CEO Dean Long, more comprehensive support is urgently needed to stabilize the broader travel ecosystem.
“While the guarantee for Rex bookings is a vital measure, it is equally important to recognize the burden being shouldered by travel advisors across Australia,” said Long. “These professionals have not only faced substantial financial exposure but have also taken on an increased workload, ensuring that traveling Australians receive the support they need during this difficult time.”
Long’s statement underscores the critical role that travel advisors play in Australia’s travel sector, particularly during crises. These advisors have been on the front lines, managing customer inquiries, rebooking flights, and navigating the complexities of travel disruptions, all while absorbing significant financial losses. The ATIA is now calling on the Federal Government to extend its support beyond Rex Airlines, emphasizing the need for financial assistance to the advisors and businesses directly impacted by the airline’s financial difficulties.
“This situation is not just about fairness; it’s about maintaining the resilience and integrity of Australia’s travel sector,” Long continued. “The travel advisors and businesses that support both corporate and leisure travelers are indispensable to our industry’s survival. We look forward to further discussions with the Government to secure the necessary support.”
The ATIA’s appeal comes at a critical time when the travel industry is still recovering from the aftershocks of the COVID-19 pandemic. If not managed with a broader support framework, the Rex Airlines crisis could undermine the fragile recovery that the travel sector has been painstakingly working towards.
The government must now take decisive action and ensure that the entire travel ecosystem is supported through this challenging period. The future of Australia’s travel industry depends not just on keeping airlines like Rex afloat but also on safeguarding the professionals who keep the industry’s wheels turning.
Written by: Jason Smith