Rex Airlines has taken a major step toward its full recovery, with administrators confirming they’ve entered into a ‘Sale and Implementation Deed’ with US aviation company Air T Inc.
Who is Air T Inc?
Founded in 1980, Air T Inc is an American holding company that owns businesses that operate FedEx and charter flights. According to its website, Air T Inc’s three core business segments are: Commercial aircraft, jet engines and parts; overnight air cargo; and aviation ground support equipment sales.
The agreement follows recent rumours of the sale, which would mark an end to 15 months of uncertainty for the embattled regional carrier.
The deal is expected to pave the way for the sale and recapitalisation of the regional airline’s business operations.
The announcement follows a competitive sale process launched after Rex’s voluntary administration in mid-2024.
Administrators Adam Nikitins, Samuel Freeman and Justin Walsh from Ernst & Young said multiple offers were considered before Air T was selected as the preferred bidder.
While the deal marks a turning point for the airline, it’s still subject to several conditions, including creditor approval and the necessary regulatory clearances.
Administrators anticipate that the second meeting of creditors – required under the Corporations Act – will be held within the current convening period.
No return to shareholders is expected from the sale, according to the latest update. However, administrators will issue a detailed report to creditors outlining expected returns and the next steps toward finalising the transaction.
In their statement, administrators also acknowledged the Australian Government for its ongoing support in facilitating the deal, which could help secure the future of one of Australia’s best-known regional carriers.
Govt reaction
Following the announcement, Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King welcomed the move that marks “a positive step towards bringing Rex out of voluntary administration”.
“The Australian Government has also entered into an agreement with Air T in relation to restructuring Rex’s financing arrangements in connection with the acquisition,” she added in a statement.
“This will allow Rex to keep flying and maintain critical aviation links for regional communities.
“As the sale process led by the Administrators is still underway, the Australian Government will not comment further at this time.”
Rex went into administration after a costly expansion into capital city routes and mounting debt forced it to scale back operations. Administrators EY have since collected $25 million in fees while searching for a buyer, with the administration period extended three times, most recently until 5 December 2025.
For more information about what the sale could mean for travellers and travel advisors, click here.
For more information on Rex, visit www.rex.com.au.
