Regional airline Rex has been purchased by a US aviation group, administrators have confirmed.
The announcement on Tuesday night comes more than a year after the airline entered voluntary administration.
Air T – which operates multiple aviation businesses across the United States – has entered into a sale and implementation deed with Rex administrator EY.
“The sale and implementation deed is subject to customary conditions precedent for a transaction of this type including receipt of regulatory approvals and approval by creditors,” the administrators’ announcement said.
The estimated return to creditors is still being determined.
However, no return to shareholders is expected, and the company remains delisted from the Australian Securities Exchange.
The federal government has continued to support the airline throughout its administration period to ensure regional and remote communities remain serviced – including purchasing $50 million in debt and providing up to $80 million in loans.
Transport Minister Catherine King welcomed the announcement as a positive step towards bringing Rex out of voluntary administration.
The government has also entered an agreement with Air T to restructure financing arrangements in connection with the acquisition.
“This will allow Rex to keep flying and maintain critical aviation links for regional communities,” King said.
Rex went into voluntary administration in July 2024 following an unsuccessful attempt to compete with rival airlines on capital city routes.
Images: Shutterstock
