Good news and bad news for Rex flyers

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/

Rex Airlines on the brink

 

To lose one commercial airline is careless; to lose a second one would be catastrophic.

Hot on the heels of the failure of start-up airline Bonza, Australian carrier Regional Express (Rex) is fighting for survival.

If Rex closes, the cost of airfares under powerful duopoly Qantas and Virgin Australia would almost certainly rise.

Rex is currently in a share trading halt and is trying to turn around some financial issues. It has not posted a media statement on its website for over a month and as of Tuesday afternoon its website was not taking bookings on some routes. 

Rex was predominantly a regional carrier until two or three years ago but has recently been operating in competition with Qantas and Virgin Australia on major routes.

The two big guns have a combined 93% of the market.

“One thing we need to do is to make sure that we have a viable and ongoing Australian aviation industry,” Australian Prime Minister Anthony Albanese said.

Albanese, unfortunately, often talks a good game but fails to deliver. There is no indication yet that he will step in. 

The PM said if Rex went under many outback and country communities would suffer.

“Rex is the only airline to go to some of those destinations, so it’s important,” he said.

Stay tuned.

Rex upping the ante with new jet aircraft

Regional Express (Rex Airlines) is adding two new Boeing 737 jets to its fleet as it continues to offer an airline alternative to Australian flyers. 

Rex this week confirmed that it has signed a Letter of Intent to lease two Boeing 737- 800NG jets. 

The aircraft are expected to arrive in Australia in June and July and the arrival of the jets will bring Rex’s fleet of Boeing 737-800NGs to nine. 

Rex deputy chairman, John Sharp AM, said: “Rex’s domestic jet services have been performing very strongly and have been profitable in the past four months.

“The travelling public has been crying out for our reliable and affordable services in the light of the shameless price gouging by Qantas and these new additions will help to alleviate the situation. 

“We are still deciding where to deploy these additional aircraft and will explore all options.” 

Rex is Australia’s largest independent regional and domestic airline operating a fleet of 61 Saab 340 and seven Boeing 737-800NG aircraft to 58 destinations throughout Australia.