Aviation

ASIC reviewing Rex statements over capital city expansion

Australia’s corporate watchdog is reportedly reviewing comments from Regional Express Holdings’ deputy chairman, which potentially breached the Corporations Act.

Last week’s call from Labor senator Tony Sheldon for the Australian Securities and Investments Commission (ASIC) to investigate the airline’s conduct have seemingly yielded results, with The Australian Financial Review reporting the regulator is now reviewing Rex’s statements.

It comes after Rex was accused of breaching its continuous disclosure obligations, when deputy chairman John Sharp revealed to the media plans for the airline to expand city routes before announcing them to the Australian Securities Exchange (ASX).

ASIC has not yet responded to Travel Weekly’s contact for confirmation.

However, the AFR reported on Wednesday that ASIC chairman James Shipton had confirmed the regulator was reviewing Rex, saying: “These disclosure obligations are a prerequisite for market integrity and investor confidence.”

According to the outlet, Rex could now face civic penalties of up to $10.5 million – or 10 per cent of its annual turnover – if found to have breached its duties under the Corporations Act.

The act requires listed entities to disclose information not generally available or which a reasonable person would expect to have a material effect on share prices to the market operator, with the ASX applying the same requirement in its listing rules.

Speaking to the AFR, Shipton also noted ASIC’s commitment to upholding disclosure laws and flagged its new specialist team reviewing market disclosures. He has previously said ASIC was projecting a “laser-like” focus on breaches of this kind during the COVID-19 pandemic

“In response to the COVID-19 pandemic, we have assembled a specialist team to review disclosures to the market, particularly as they relate to the impacts of COVID-19 and capital raisings,” he told the AFR.

However, Shipton would not reportedly disclose any specifics regarding the situation surrounding Rex as it remains under review.

Following the airline’s exit from its earlier trading halt, after Sharp revealed its planned domestic route expansion, the company’s shares rose 32 per cent to $1.19. The company’s shares currently sit at $1.06.

Rex then issued a statement to the ASX saying it did not believe information about possible capital city operations would alter the price of its shares.

“Rex has always tried to ensure that any material information is disclosed to the ASX prior to the release to the general public,” it said.

“In this particular instance, Rex believed that information about possible city operations was not sufficiently definitive to constitute material information.

“Rex has made many announcements of contracts worth several hundreds of millions [of dollars] with barely a ripple on the share price. Given how the share price reacted to the news, it is evident that our judgement call was erroneous.

“We wish to reassure ASX that Rex will err on the side of caution in the future.”

Senator Sheldon has welcomed the review, telling the AFR: “I welcome ASIC’s decision to review the comments made by Rex.

Rex must adhere to corporate laws that are designed to protect the public.”



SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Destinations

Skip the rebound surge with South America

For clients eager to travel overseas again but wanting to avoid the summer disruptions, leave Greece or California for another time and head to South America.

Share

CommentComments

Destinations

Events

Top 12 unmissable events for Italian summer trips

Summer in Italy means sunshine, gelato, promenading after dinner, Aperols overlooking the ocean, hiking, cycling…and a jam-packed events calendar.

Share

CommentComments

Aviation

Airport queues return in anticipation of the school holidays

If you were looking for a good chance to relisten to Led Zeppelin’s entire discography but can’t find the time, we recommend booking a flight to literally anywhere from Sydney or Melbourne airport this month.

Share

CommentComments

Destinations

Queensland government mulls tourism tax

In response to this, the NSW government will be introducing an ice-cream tax, which has infuriated primary school kids across the state.

Share

CommentComments

Destinations

South Africa drops all remaining COVID restrictions

Meanwhile, we’ve decided to keep mask-wearing optional in Travel Weekly’s office, mainly to protect us against the office dogs’ various… smells.

Share

CommentComments

Travel Agents

AFTA and CLIA bring back NTIA and the port & destination showcase

Polish your dancing shoes because it’s industry events galore as the two peak bodies reveal the return of two much sought-after happenings.

Share

CommentComments

Aviation

Breaking News

Jetstar CEO to step down as Qantas promises $5,000 boost to employees and more domestic capacity cuts

It’s a day of mixed emotions for Qantas and Jetstar staff today, with bouts of cheering and sobbing breaking out at an alarming rate.

Share

CommentComments

Events

Save the date! Hawai‘i Tourism Oceania announces dates for ‘Aloha Down Under’ roadshow 2022   

by sponsored by Hawai‘i Tourism Oceania

Get your diaries out because Australia and New Zealand’s biggest annual Hawai‘i Roadshow, Aloha Down Under, is on from the 22nd to 29th August 2022. 

Share

CommentComments

Hotels

Marriott launch home rental collection for ANZ

Marriott has launched its new home-rental collection while the Travel Weekly staff have decided to launch a Pokémon cards collection. It’s not quite as significant but at least it’s something.

Share

CommentComments

Road & Rail

Avis launches high-end car rental brand for luxe travellers

Got any clients looking to indulge in their midlife crisis without going the whole hog? We’ve got good news.

Share

CommentComments

Travel Agents

TravelManagers announce speakers for national conference

We heard that the muppets will be there, but we have been watching a lot of Sesame Street lately so we could be getting confused.

Share

CommentComments

Aviation

“I thought I was going to die”: Passenger plane catches fire on runway

Don’t worry, the photo shows a white chemical foam used to put out the fire, not a random snowfall confined to a 30-metre area in Miami as you may assume from a first glance.

Share

CommentComments