The federal government becomes Rex Airlines’ largest secured creditor, sparking talk of nationalisation

In the lead-up to a federal election, bipartisan support to rescue the key regional airline Rex may not surprise voters.

But what happens next could set the stage for the federal government to own an airline for the first time in three decades, after it privatised Qantas through a public share sale in 1995.

This week, the federal government announced it was acquiring $50 million in debt from Rex Airlines’ largest secured creditor PAG — the company that invested in Rex so it could launch capital city flights, which ultimately led to its downfall.

Rex went into voluntary administration last year, and the government’s move gives it significant influence over the airline’s future.