Administrators of Australian regional carrier, Regional Express Airlines (Rex), announced a deal with U.S. aviation company Air T, Inc., to purchase and recapitalise the business after several months of limbo.
Air T to the Rescue
The agreement brings to a close a 14-month voluntary administration period for the Australian airline, which began in July 2024. The Minneapolis-based company has an impressive portfolio with sixteen companies and operates in air cargo, commercial aircraft, engines, parts, and aviation ground support.
Federal Minister for Infrastructure, Transport and Regional Development, Catherine King, welcomed the development, stating:
This will allow Rex to continue flying and preserve essential aviation connections for regional communities.
The Australian Government has already committed substantial financial support to Rex and its national network, including regional routes and services operated in collaboration with the Queensland Government.
These efforts have included $81.5 million USD in loans to sustain operations, with $7.1 million allocated to cover entitlements for former Rex employees and to guarantee ticket sales. Meanwhile, the airline has also racked up $31 million of debt from its largest creditor, PAGAC Regulus Holdings Limited.
Rex Airlines Itself
Regarding the numbers and what Rex has and where it operates, the airline boasts:
- Operations at over 50 regional airports across Australia
- A fleet with 57 Saab 340B (Plus) and Saab 340B types, with an average age of 31 years
These aircraft will need replacing, and previously, the cost of doing so has been a preventative for the acquisition of the regional carrier.
King says:
The Australian Government has also entered into an agreement with Air T in relation to restructuring Rex’s financing arrangements in connection with the acquisition.
However:
As the sale process led by the Administrators is still underway, the Australian Government will not comment further at this time.
After so many months of struggling, is this the turning point for Rex Airlines? Let us know your thoughts in the comments below.
