Rex has secured a lifeline, set to exit voluntary administration and avoid a government takeover after being sold to US-based aviation company Air T.
Administrator EY Australia announced the sale on Tuesday evening, confirming that a Sale and Implementation Deed had been signed with Air T, Inc., finalising the airline’s recapitalisation.
“As outlined in Rex’s ASX release on 17 June 2025, the Administrators have received a number of offers from interested parties in connection with the process for the sale and/or recapitalisation of the Group,” EY wrote.
“Having considered those offers as part of the sales process, the Administrators are pleased to confirm they have now entered into a Sale and Implementation Deed with Air T, Inc., which will result in the sale and recapitalisation of the business operations conducted by the Group.
“No return to shareholders is anticipated. An update will be provided ahead of the second meetings of creditors of the Group which is currently anticipated to be held within the current convening period of the administration.”
The regional airline has been in administration since July last year.
Federal Transport Minister Catherine King welcomed the announcement as “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,” a spokesperson for the minister said.
“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.”
According to reports in the Sydney Morning Herald, Air T has access to parts needed to maintain Rex’s Saab 340 aircraft, which have drawn scrutiny after two engine malfunctions in less than a week. The US company owns Kingman Airport in Arizona, where Rex had allegedly removed parts from leased planes belonging to Jet Midwest. The resulting lawsuit was dismissed after Rex entered administration.
Air T, which is listed on the Nasdaq, describes itself as “an industrious American company with a networked portfolio of powerful businesses, each who operate independently yet interrelatedly”. The company’s operations span air cargo, aircraft leasing, engines and parts, and ground support.
EY Australia, which was given until 5 December to complete the sale process, thanked the government for its assistance in finalising the deal.
“The Administrators would like to thank the Australian Government for their support to date in assisting to facilitate the proposed transaction,” a statement said.
Rex was placed into voluntary administration in July 2024 after accruing $50 million in debt to its largest creditor, PAG. The government subsequently stepped in to underwrite continued passenger services until December while EY sought a buyer.
Based in Minneapolis, Air T operates 16 aviation-related companies and will oversee the recapitalisation of Rex’s operations.
The sale still requires final approval from creditors, but it marks a turning point for Australia’s largest independent regional carrier.
It remains to be seen what the sale will mean for regional routes, including whether suspended services such as flights to Armidale will return. All flights are currently continuing under federal government support while the sale is finalised.
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