Australia’s third-largest airline, Rex, has fallen into insolvency and entered voluntary administration after a failed bid to compete with Qantas and Virgin Australia, grounding all major city flights.
While regional services are still running for now, the airline’s future – and that of the Rex Flyer loyalty program – is uncertain.
As speculation swirls around the future of the airline, members of the airline’s Rex Flyer loyalty program stand to lose their points. While Rex’s owners, creditors, staff members and those who have booked flights have the most to lose, members of the airline’s loyalty program members also face a nervous wait.
The administrators’ official statement provides the following information:
“Rex Flyer frequent flyer points will be frozen during the administration. You will not be able to use or accrue points during the administration period. In the event of a successful restructure of the business accrued points may become available again. Further information will be provided in due course.”
Should Rex survive operating regionally, the scheme might be reinstated. However, since the fledgling Rex Flyer program was launched less than one year ago, it likely boasts a very small loyalty base. It’s unclear whether the program would be viable to keep.
After all, Rex Flyer boasts a far smaller footprint than the juggernaut airline loyalty programs operated by Qantas and Virgin Australia. There’s no money-spinning network of co-branded credit cards or tie-ups with supermarkets. This makes it vulnerable, similar to Ansett’s collapse in 2002, which resulted in the loss of all points.
And even if Rex Flyer is reinstated or rebadged under a new owner, it’s unknown whether points would retain their full, original value – there’s a strong chance that they could be devalued significantly.
Looking Back: How Virgin Australia’s insolvency impacted Velocity Frequent Flyer
Rex is the latest Australian airline to face insolvency.
After Virgin Australia was placed into administration in 2020, members of the Velocity Frequent Flyer program rushed to the program’s online store to redeem their points for products and gift cards, amid speculation that the points would be worthless.
Fortunately, Velocity points were reinstated at full value after Virgin’s restructuring. The program has since built a solid network of redemption opportunities over the past few years. However, Rex Flyer’s situation is very different. It’s a new program with a small loyalty base, making its future uncertain.
If you hold Rex Flyer points, what should you do?
If you hold Rex Flyer points, you should assume that your points are currently worthless.
While points are currently frozen and cannot be redeemed or earned, future announcements will provide clarity on whether the program will be reinstated or if there will be any options for redeeming points – either at full or reduced value.
We’ll be keeping an eye on updates from Rex and the administrators handling the airline’s insolvency.
Overview of the Rex Flyer Program
Launched in late 2023, Rex Flyer allowed travelers to earn and redeem points for flight rewards and upgrades and gather status points for lounge access and status perks. With the airline now in administration, points and status credit earning opportunities are currently frozen.
Earning and Redeeming Rex Flyer points
Members could earn up to seven points per dollar spent on flights and up to five points per dollar on ‘Rex Extras’ like baggage and seat selection. A launch bonus offered double points for new bookings made by January 2, 2024.
Points could be redeemed for economy and business award seats starting from 7,400 points plus taxes, with upgrades ranging from 4,300 to 13,000 points. Redemptions were available in three tiers: Ultimate (cheapest, requiring flexibility), Getaway (more flexible), and Anytime (most flexible, without change fees). The program also offered a ‘Points + Cash’ option to offset ticket costs with points.
A popular feature was the ‘Last Minute Flight Rewards,’ allowing members to redeem points for almost every unsold seat within 48 hours of departure, catering to urgent travel needs.
Status Perks and Family Benefits
Launched in early 2024, the status perks included four membership levels: Opal, Sapphire, Emerald, and Diamond, with benefits like free lounge access, business upgrades, and extra legroom seats. Family-friendly benefits included points and status pooling and a parental leave membership pause.
Airport Lounges
Rex operates a network of airport lounges in Adelaide, Sydney, Melbourne, and Brisbane. Beyond catering for Rex customers, these airport lounges also form part of the Priority Pass network. With the airline now in administration, it’s unclear what the future currently holds for these lounges.
We will provide more information about RexFlyer as updates become available.
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Let’s hope something is done to save Rex – Australia needs the third carrier for competition to thrive.