Compensation available for City of Albany after being left with $456,000 unpaid bill from Rex Airlines

The City of Albany is hopeful it will be able to recoup almost half a million dollars owed to it by Rex Airlines, as the Federal Government opens a funding pool for airports affected by unpaid claims.

Federal Minister for Transport Catherine King announced the Regional and Remote Airport Support Program on Wednesday, allowing airport owners to apply for a share in $5m of funding.

As owners of Albany Regional Airport — which was left holding a $456,000 unpaid bill at the time of Rex’s collapse into administration in July of 2024 — the city is eligible to access the fund.

Albany mayor Greg Stocks, who previously lashed the embattled airline for leaving local ratepayers “paying the price for their incompetence”, praised the compensation program, saying he was hopeful the majority, if not all, of the debt would be repaid.

“The city welcomes the Federal Government’s support in providing compensation to councils and airports that have experienced a financial shortfall following the withdrawal of Rex Airlines services,” he said.

“The city intends to participate in the established claims process to seek reimbursement of its full out-of-pocket costs.”

The Shire of Esperance, which was short $440,587, is also one of Rex’s 4800 creditors and will be able to access the program.

Eligible organisations will receive a relief payment proportionate to the total of all applicant unsecured debt.

The airline’s debt totalled more than $500m before it entered voluntary administration.

Ms King said the funding pool aims to ease the financial impact of the unpaid debts on creditors and “ensure residents and ratepayers are not impacted”.

“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.”

American aviation business Air T officially secured ownership of Rex on December 18, 2025, with its chief executive Nick Swenson announcing the US business would “continue the important work of strengthening regional aviation in Australia” and “ensuring the airline operates on a sustainable basis for the long term”.

Applications to the Federal program close on March 17.