A low-profile US aviation company is poised to run Australian rural airline Regional Express (Rex).
Air T has secured a deal to take over Rex, which went into administration last year with large debts and has been propped up with government money.
Rex is regional airline that serves numerous small towns across Australia,
It has been able to continue flying regional routes thanks to more than a $100 million government bailout.
The airline’s troubles were created when it attempted to compete with the major airlines - Qantas and Virgin Australia - on mainline big city routes.
More details on the deal could be released this week, news hub Travel Mole reported.
Air T operates various aviation divisions in the US, including charter and maintenance services. It also operates some FedEx services and a facility with access to hard-to-find aircraft parts which would help keep Rex’s Saab 340 aircraft running.
Over 30 of Rex’s 56 Saabs are currently in service, with the remainder grounded awaiting parts and engines.
There was also some bad news for Rex frequent flyers this week with the airline's loyalty program, Rex Flyer, suspended after the company managing the program was placed into voluntary administration.
Rex Flyer Pty Ltd is now in the hands of administrator EY (formerly Ernst and Young), which said it is now assessing the next steps for the loyalty brand and will issue an update to members as soon as practicable.
The development followed confirmation of Air T's agreement with Rex administrators to buy the the Rex business and retain staff, but also to pursue growth opportunities.
"The proposed acquisition contemplates a continuation and growth of Rex’s regional airline business and continuing employment for its workforce," Minneapolis-based Air T said on its website.
Air T has said it expects to close the acquisition of Rex by the end of the year, so long as creditor and
other approvals are obtained.
In a statement, a spokesperson for Federal Transport Minister Catherine King said the announcement is a “positive step towards bringing Rex out of voluntary administration”.
Established in 1980, Air T has widespread freight and transport interests.
Here is a link to the Air T statement: https://airt.com/2025/10/21/agreement-regional-express-holdings/
Air T has secured a deal to take over Rex, which went into administration last year with large debts and has been propped up with government money.
Rex is regional airline that serves numerous small towns across Australia,
It has been able to continue flying regional routes thanks to more than a $100 million government bailout.
The airline’s troubles were created when it attempted to compete with the major airlines - Qantas and Virgin Australia - on mainline big city routes.
More details on the deal could be released this week, news hub Travel Mole reported.
Air T operates various aviation divisions in the US, including charter and maintenance services. It also operates some FedEx services and a facility with access to hard-to-find aircraft parts which would help keep Rex’s Saab 340 aircraft running.
Over 30 of Rex’s 56 Saabs are currently in service, with the remainder grounded awaiting parts and engines.
There was also some bad news for Rex frequent flyers this week with the airline's loyalty program, Rex Flyer, suspended after the company managing the program was placed into voluntary administration.
Rex Flyer Pty Ltd is now in the hands of administrator EY (formerly Ernst and Young), which said it is now assessing the next steps for the loyalty brand and will issue an update to members as soon as practicable.
The development followed confirmation of Air T's agreement with Rex administrators to buy the the Rex business and retain staff, but also to pursue growth opportunities.
"The proposed acquisition contemplates a continuation and growth of Rex’s regional airline business and continuing employment for its workforce," Minneapolis-based Air T said on its website.
Air T has said it expects to close the acquisition of Rex by the end of the year, so long as creditor and
other approvals are obtained.
In a statement, a spokesperson for Federal Transport Minister Catherine King said the announcement is a “positive step towards bringing Rex out of voluntary administration”.
Established in 1980, Air T has widespread freight and transport interests.
Here is a link to the Air T statement: https://airt.com/2025/10/21/agreement-regional-express-holdings/
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