Esperance Shire is facing unsecured debt and social concerns as Rex Airline’s voluntary administration could leave the local airport obsolete, increasing financial stress and disturbing essential travel in the future.

Rex Airlines currently provides 13 return flights per week on the Esperance route and the loss of this would have significant impact on residents and the tourism sector.

Rex Airlines went into administration on July 30, after accruing more than $500 million of debt and owing money to 4800 creditors including staff, suppliers, and other agencies. While the flights are still operating, the company’s future is now in the hands of the administrators at EY, who may make a call based on their profitability.

Esperance is one of four regional WA towns with flights to Perth impacted by the airline administration. With a population of 13,000 people and being a 7.5-hour drive southeast of Perth, the community is highly dependent on the service.

In addition, the Esperance local government could be facing debt due to the airport not being used to its maximum, which will incur costs for the shire. Esperance Shire President, Ron Chambers said, “it’s unfair that the airline was put into this situation through a contract with the state government, but we’re the ones left holding the bag when it doesn’t work.”

Air hostess and Esperance resident Zara Riggs said the “biggest impact would be on the people having to go to Perth for regular medical treatments. They would have to relocate closer to Perth to be able to continue treatment.” Medical professionals have been flying into Esperance and without that service there will be a medical services gap within the community.

The tourism sector plays a crucial role in Esperance’s economy and is facing challenges due to the airline being in administration. Mr Chambers said the time taken to drive to Esperance would deter some tourists, make the town less accessible and decrease business ventures and sales.

Esperance residents are hoping that a takeover will occur, although the Shire has concerns regarding the next company and hope they will not make the same mistakes Rex has, putting communities under financial stress. Mr Chambers said that he “thinks it’s important that we do have an airline”, and he hopes that “this lesson is learnt moving forward with the next person that picks up the contract.”

The town is waiting to hear if a takeover will be confirmed to address the situation the community is in.