Rex’s administrators cite a pilot shortage and supply chain issues as key factors contributing to the airline’s downfall.

Administrators for the collapsed regional carrier Rex Airlines have identified a pilot shortage, supply chain challenges, and under-capacity flights as key contributors to the company accumulating over $500 million in debt. Rex entered voluntary administration at the end of July following days of speculation about its future, after being placed in a trading halt on the Australian Securities Exchange (ASX).

To date, around 600 employees, primarily from capital city routes, have been laid off. On Friday, administrators from Ernst and Young (EY) informed creditors that Rex Airlines owes money to 4,800 creditors, including former staff, suppliers, and other agencies. It may take months for these creditors to be paid.

Rex’s regional business remains unaffected by the administration process and continues to operate flights across rural and regional Australia. Although the exact cause of the airline’s collapse is still under investigation, administrators have identified three primary factors contributing to its substantial debt.