Hon. Colin de Grussa questions the financial due diligence undertaken by the WA government before awarding Rex Airlines intrastate route rights, given Rex's entry into voluntary administration. He also inquires about measures to protect local governments from financial losses due to dealings with Rex.

AnsweredQoN 820Legislative Council
Asked
13 August 2024
Portfolio
Transport

QuestionView source ↗

REX AIRLINES —
INTRASTATE AIR ROUTES — LOCAL GOVERNMENT
820. Hon COLIN de GRUSSA to the minister representing the
Minister for Transport:
I refer to the placement of Rex
Airlines into voluntary administration and statements made by the administrators
of debts totalling $500 million.
(1) What
financial due diligence was undertaken by the state government prior to
awarding Rex Airlines with the rights to operate services between Perth and
Albany, Esperance, Carnarvon and Monkey Mia?
(2) Given that
the state government was responsible for awarding Rex Airlines with the
monopoly rights to operate on those routes, what measures is the government
taking to ensure local government authorities do not suffer financial losses
arising from their dealings with Rex?

AnswerView source ↗

I thank the honourable member for
some notice of the question. The following answer has been provided to me by
the Minister for Transport.
(1)–(2) When
considering tender applications for operators on regulated air routes, the
state government assesses a range of criteria, including air services;
airfares; infrastructure capability; route development and community
engagement; and the adequacy of the Western Australian industry participation
strategy participation plan, and undertakes a financial assessment.

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