Rex – Regional Express Sells Assets to Repay Debts
The administrators of Rex – Regional Express (ZL, Wagga Wagga) have sold key assets, including a B737 simulator and a Textron King Air 350C twin turboprop, to repay outstanding debts. According to a March 28, 2025, filing with the Australian Stock Exchange, the B737-700/B737-800 simulator sale, including the property near Sydney Kingsford Smith Airport, generated USD3.83 million. The King Air sale added USD7.3 million to the total.
The funds from these sales were used to clear the debt owed to PAGAC Regulus Holding Pte. Ltd., an investment firm. Any remaining proceeds after this payment will be used to address additional debts from the insolvency of Regional Express Holdings Limited. This follows the airline’s voluntary administration in July 2024, when it was found to owe around AUD500 million (USD312 million).
The administrators, Adam Nikitins, Samuel Freeman, and Justin Walsh from Ernst & Young, have already sold off several parts of the business, including a training school and stakes in Pel-Air Aviation and National Jet Express. However, the airline’s core operations, which rely on a fleet of Saab 340Bs serving regional and remote areas, have not been sold.
The Australian government has stepped in to assist, acquiring a portion of the debt and providing an AUD80 million (USD50 million) loan to maintain services during the administration process. If no buyer is found, the government has indicated it will consider nationalizing Rex to ensure the continuation of vital regional flights.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com