Rex Airlines snapped up by US company
Regional airline Rex has a US buyer, executives have confirmed.
The announcement on Tuesday evening came more than a year after the airline went into voluntary administration.
Air T, which operates several aviation businesses in the US, has signed a sales and implementation agreement with EY, administrators of Rex.
“The sale and implementation agreement is subject to customary conditions precedent for such a transaction, including the receipt of regulatory approvals and the approval of creditors,” the administrators’ announcement said.
The airline’s estimated return to its creditors is being determined.
No return to shareholders is expected and the company is no longer listed on the Australian Securities Exchange.
The federal government is supporting the airline, purchasing $50 million in debt and providing loans of up to $80 million to ensure service to regional and remote communities.
Transport Minister Catherine King said Tuesday’s announcement was a positive step towards removing the airline from voluntary administration.
The government also signed an agreement with Air T to restructure financing arrangements linked to the acquisition.
“This will allow Rex to continue flying and maintain critical aviation links for regional communities,” Ms King said.
Rex went into voluntary administration in July 2024 after a bid to compete with rival airlines on capital routes failed.
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