Aviation

ASIC places restrictions on Rex, as airline gets green light from CASA for domestic flights

Huntley Mitchell

Huntley Mitchell

The Australian Securities & Investments Commission (ASIC) has placed restrictions on Regional Express (Rex) for failing to disclose its plans to fly domestic routes on the ASX.

The corporate regulator has restricted Regional Express (Rex) from issuing a reduced-content prospectus and using exemptions for reduced disclosure in fundraising documents until 14 December 2021.

ASIC’s decision means the airline will not be able to rely on reduced-disclosure rules and instead must issue a full prospectus in order to raise funds from investors.

The corporate regulator’s decision was based on Rex’s failure to disclose to the market that it was considering the feasibility of commencing domestic operations, such as flying to capital cities, in addition to its regional operations.

This information was first released publicly in an article on The Australian Financial Review by journalist Tony Boyd on 11 May 2020, prompting an investigation by ASIC.

“ASIC considers the ability to use a reduced-disclosure prospectus a privilege that is dependent on compliance with other aspects of the law, including that companies meet their ongoing disclosure obligations,” the regulator said in a statement.

“Where a company fails to comply with its disclosure obligations in a full, accurate and timely manner, ASIC will intervene to ensure that investors are protected.”

ASIC said its investigation into Rex’s conduct is ongoing, and that the airline has the right to appeal to the Administrative Appeals Tribunal for a review of the decision.

Rex said in a statement that it maintains a different view from ASIC and is considering its position in relation to the corporate regulator’s decision.

The airline also confirmed that ASIC’s restrictions will not impede the $150 million funding deal it has lined up with Asian investment firm PAG to launch its domestic services in March 2021.

“Rex does not anticipate any other fundraisings in 2021 that would be affected by the restrictions,” it said.

“All regulatory approvals from CASA for the operation of domestic jet operations, and from FIRB in relation to the transaction, have been obtained.

“Detailed documentation seeking shareholder approval has been prepared, and ASIC has completed its review of that documentation.

“Rex intends to dispatch the documentation to shareholders as soon as ASX completes its review, with a shareholder meeting then scheduled for mid-January.”


SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Aviation

Six airport workers charged over plans to import “large quantity” of drugs into Sydney

And they would have gotten away with it too if it wasn’t for COVID-19 and its meddling flight disruptions.

Share

CommentComments

Hotels

Wyndham unveils new all inclusive resort brand

The world’s largest hotel franchising company has welcomed its 22nd brand and boy howdy is she a beauty.

Share

CommentComments

Technology

Australia’s internationally recognised vaccine certificate to be released tomorrow

Overseas jaunts are one step closer, with the federal government ready to hit ‘go’ on our new COVID-19 international vaccine certificates.

Share

CommentComments

Technology

Google can now estimate carbon emissions for almost all flights

You don’t even need to book through Google Flights to see the CO2 estimate… we’re not suggesting agents steal the info as an add-on for clients, but also we are.

Share

CommentComments

Tourism

The positive reactions to NSW’s big international travel news continue, but not all industry figures are happy

The overall response to the NSW government’s big international travel announcement on Friday has, unsurprisingly, been a very positive one, but not all industry figures are dancing in the street.

Share

CommentComments

Cruise

CLIA adds extra support for agent recovery to 2022 membership

Agents who sign up to be a CLIA member will score access to bonus commissions, live events and an expanded education program.

Share

CommentComments

Destinations

Thailand to scrap quarantine for select overseas visitors

The country is still recording more than 10,000 cases a day and has only fully vaccinated 33 per cent of its population, but Thailand’s PM said reopening was a crucial step to save the economy.

Share

CommentComments

Aviation

Ukrainian airline scraps heels and tight skirts for comfy suits and Nike sneakers

This airline has given its cabin crew uniform a modern update that ditches tight-fitting, restrictive clothing and high heels for something a bit more suited to the job.

Share

CommentComments

Wholesalers

Intrepid snares majority stake in New Zealand’s Haka Tours and ANZ Nature Tours

The global travel B Corp has kicked off its future growth plans with a 60 per cent slice of not one, but two touring brands.

Share

CommentComments

Aviation

Clive Palmer offloads Qantas shares in protest of airline’s staff vaccination policy

by Ali Coulton

Looks like the mining magnate has taken a break from tweeting his famous Tim Tam poems to shake his fist at the flying kangaroo’s vax policy.

Share

CommentComments

Hotels

Guests forced to hide as heritage-listed hotel break-in causes $30,000 in damage

A group of people have broken down the door of a historic Kalgoorlie hotel, terrorising guests and forcing one woman to hide in a wardrobe.

Share

CommentComments

Events

Get excited, because the European Showcase is coming to a screen near you!

With international borders on the verge of reopening and hype around overseas travel at an all-time high, this event couldn’t have come at a better time!

Share

CommentComments