Rex Airlines’ creditors have approved a deal paving the way for US-based investor Air T to take ownership of the regional carrier.
Approved at the second meeting of creditors, the agreement secures the future of Rex’s regional operations, which serve 54 airports across Australia, along with its pilot training school, aviation maintenance arm and the Rex Flyer frequent flyer program.
The transition of ownership is expected to be finalised by mid-December 2025.
Under the deal, Air T will assume control of the Rex Group, while Rex Airlines Pty Ltd, which operated the carrier’s B737 capital city routes, will enter liquidation. The airline’s Saab 340 regional business, however, will continue connecting remote and regional communities.
EY Parthenon partner and administrator Sam Freeman said the arrangement delivers a “superior outcome” for employees, suppliers, and regional stakeholders, ensuring continuity of service and ongoing employment.
“On behalf of the administrators, we wish to thank all of the staff who have ensured the seamless continuation of regular passenger services over the past 15 months, customers who have continued to support Rex through the voluntary administration, suppliers who have continued to support the business and the Australian Government, who have provided extensive support to enable this outcome,” Freeman said.
The Albanese Government, which recently revealed a support package for Air T’s bid, described the move as an important outcome for regional connectivity.
The government’s support package includes the restructuring of approximately $90 million of existing debt and a new commercial loan of up to $60 million.
In exchange, Air T has agreed to strengthen Rex’s governance and safeguard essential regional air services.
The Federal Government also acknowledged Rex and the administrators for maintaining operations during the administration period.
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.
KARRYON UNPACKS: Rex has officially avoided a crash landing. Creditors have greenlit Air T’s takeover, with government backing to keep the airline’s regional heart beating. Expect smoother skies ahead for the carrier’s 54-airport network, and a fresh focus on stronger governance and sustainability under its new owners.
