Regional and remote airports affected by the voluntary administration of Regional Express Airlines (Rex) can now apply for a share of $5 million in new federal funding, as the Commonwealth Government moves to stabilise aviation services in some of the country’s most isolated communities.
The funding is being delivered through the Regional and Remote Airport Support Program and is aimed at councils and airport operators facing financial pressure from unpaid claims linked to Rex’s administration.
Many regional airports are owned and managed by local governments, leaving councils and ratepayers exposed when airline services are disrupted. The new support package is intended to help offset these losses and reduce the risk of services being cut or scaled back.
For communities that rely on air travel for access to health care, education, employment and essential goods, the stability of local airports remains critical.
Supporting councils and communities
The federal government says the program is designed to protect both airport operations and the communities that depend on them.
By assisting with the financial impacts of unpaid claims, the funding aims to prevent costs being passed on to residents and businesses, while helping councils maintain essential infrastructure.
The Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King, said the package reflected the government’s commitment to regional Australia.
“Regional Australians know the Albanese Labor Government has their back, which is why we worked hard to support regional communities through the voluntary administration process,” she said.
“Rex plays an essential role in connecting regional Australian communities and this will ensure those services can continue.
“I encourage councils and airports affected to apply for this support program, ensuring the maintenance of critical aviation links across our country.”
Following Rex’s acquisition
The funding announcement follows the recent purchase of Rex by aviation investor Air T, supported by a new $60 million commercial loan from the federal government and the restructuring of $108 million in existing debt.
As part of the agreement, Air T has committed to a range of measures aimed at preserving essential regional aviation services. These include returning more aircraft to service and increasing the frequency of profitable flights across the Rex network.
The deal was designed to provide stability after a period of uncertainty that raised concerns about the future of regional air routes in NSW and across Australia.
For many regional centres, Rex services represent the primary commercial link to major cities and service hubs, making continuity of operations vital to local economies.
Aviation as critical infrastructure
Regional aviation plays a central role in sustaining economic and social life outside metropolitan areas. Reliable air services support tourism, business activity, freight movement and medical transfers, particularly in remote regions where alternative transport options are limited.
When routes are reduced or suspended, the effects are often felt quickly by health providers, small businesses and community organisations.
By providing targeted financial assistance to airport operators, the government says the new program will help safeguard this critical infrastructure during a period of ongoing volatility in the aviation sector.
Applications now open
Applications for the Regional and Remote Airport Support Program are now open and will close on 17 March 2026.
Eligible councils and airport authorities can access program guidelines and application details at business.gov.au/RRASP.
For regional and remote communities still navigating the impacts of Rex’s administration, the funding offers short-term relief and a measure of stability, as governments and industry work to secure the future of regional aviation.
