Rex Hits Outs Against Qantas' Sovereign Debt Guarantee

Australian regional carrier, Regional Express (Rex), has hit out against plans for its government to provide a sovereign debt guarantee to Qantas, arguing that it is unfair to rival airlines such as itself. It called for the Qantas Sale Act to be repealed, or for the debt guarantee to be extended to all regional carriers. "A debt guarantee to Qantas would create an uneven playing field with regards to regional carriers. In fact, guaranteeing Qantas' debts would place regional airlines in exactly the same position as Qantas claims to be in now, only worse, as regionals would be facing two so-called "government-backed" airlines (using the Treasurer's term) as competitors," Rex said in a statement. "Regional carriers are suffering from little or no appetite from financial institutions to extend credit in today's toxic aviation environment, and do not have recourse to capital from foreign investors or State-owned enterprises." Rex has a $50m capital expenditure budget during this financial year and requires partial financing for it.

TAGS: Asia Pacific
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