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US-based aviation holding company Air T has signed a Sale and Implementation Deed to acquire Regional Express Holdings (Rex), a major Australian regional airline. The acquisition follows Rex’s entry into voluntary administration due to ongoing financial difficulties. The transaction, expected to close by the end of the year, is contingent on approvals from creditors, courts, and regulators.
As part of the agreement, the Australian government has committed to restructuring Rex’s financing to ensure the continued operation of regional flights. Air T intends to provide funding for engine renewals and maintenance to return Rex’s grounded Saab 340 fleet to service, aiming to stabilize flight schedules and maintain essential regional connectivity.
Currently, about half of Rex’s routes face no direct competition, highlighting the airline’s unique position in Australia’s aviation market. However, the administrators have indicated that shareholders are unlikely to receive any returns from the deal, and the outcome for thousands of creditors remains uncertain. Regional councils are among those owed significant sums by the airline.
