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Bitter dispute at controversial airline escalates

Bitter dispute at controversial airline escalates

Rex Chairman John Sharp has filed a complaint with the Australian Federal Police against the airline’s former chairman.

The criminal conduct complaint, filed on August 12, relates to a recording that former chairman Lim Kim Hai allegedly made of Rex’s last board meeting.

According to The Australian, Mr Hai offered the recording to a journalist.

Directors were reportedly made aware of the recording at the July 30 meeting where the appointment of Ernst & Young as voluntary administrator was voted on.

According to The Australian, Mr Lim told the directors he would use the recording in legal proceedings against them. However, Mr Lim was advised that the recording was illegal because there was no consent to the recording.

NSW Premier Dominic Perrottet, Minister for EnterpriseNSW Premier Dominic Perrottet, Minister for Enterprise

Rex chairman John Sharp has filed a complaint with the Australian Federal Police against the airline’s former chairman. Image: Tim Hunter.

REX AIRLINESREX AIRLINES

The criminal conduct complaint, filed on August 12, relates to a recording that former chairman Lim Kim Hai allegedly made of Rex’s last board meeting. Image: NewsWire / Jeremy Piper

The complaint was filed after Mr Sharp was informed of Mr Lim’s plans to give the recording to a journalist.

An AFP spokesman confirmed receipt of a report on August 12 but declined further comment.

NewsWire has contacted EY’s voluntary administrators for comment.

Rex’s board sacked Mr Lim in favour of Mr Sharp last June. Mr Lim subsequently signalled that he wanted his old job back and Mr Sharp and three other directors were sacked at an extraordinary general meeting that has yet to take place.

Due to the airline’s bankruptcy at the end of July, flights to and from regional cities were suspended. However, flights with smaller aircraft continued.

The federal government has now intervened and has promised to provide a refund or chargeback if a Rex flight is cancelled and not rebooked because no other alternative is available.

Last Thursday, Catherine King, Minister for Transport and Regional Development, told Parliament that the guarantee was a support for people in Australia’s regions “so that no one is left behind”.

The guarantee applies to all regional flight bookings with Rex made after the date of the company’s voluntary insolvency on July 30, 2024 at 9:31 p.m.

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