The corporate regulator ASIC is suing Rex Airlines, alleging the company and four of its directors engaged in "deceptive and misleading conduct" over its profitability.
The regulator alleges that Rex told the Australian Securities Exchange in February 2023 that the company would have "positive operating profits" for the 2023 financial year, but "did not have a reasonable basis for that claim", given it had been incurring operating losses. "We will allege four of Rex's directors breached their duties because they failed to take steps to ensure the market had accurate information about the company's financial performance."after a failed attempt to offer flights between major capital cities, serviced by Boeing 737 jets. Rex's regional services continue to operate.