Air T Completes Acquisition of Australia’s Rex Airline
US-based aviation holding company Air T has completed its acquisition of Rex – Regional Express, becoming the 100% owner of the insolvent Australian regional carrier. The transaction officially closed on December 18, following creditor approval secured in November, marking a major step toward stabilising one of Australia’s most important regional aviation networks.
Rex, which is headquartered in Wagga Wagga, entered administration earlier this year amid mounting financial pressures. Under the terms of the deal, the Australian government remains involved as a secured creditor, reflecting the strategic importance of Rex’s regional services to remote and underserved communities across the country.
As part of the acquisition, Air T will provide a AUD50 million (USD33 million) credit facility to support Rex’s immediate operational and liquidity needs. The funding will be backed by one of Air T’s investors and is intended to stabilise the airline’s balance sheet while supporting its return to reliable service levels. In parallel, the Australian Government has committed to extending a separate AUD60 million (USD39.6 million) loan to the airline.
In addition to the new financing, the Australian government has pledged to restructure approximately AUD90 million (USD59.4 million) in existing debt. This restructuring is designed to ease Rex’s financial burden and provide a more sustainable foundation as the airline transitions under new ownership. Government backing was contingent on Air T’s commitment to maintaining and restoring essential regional air connectivity.
In exchange for the government’s vote of support, Air T is expected to restore fourteen Saab 340B turboprops to active service. This move would expand Rex’s operational fleet from 31 to 45 aircraft, significantly increasing capacity and improving schedule resilience across its regional route network. The Saab 340B has long been the backbone of Rex’s operations, well suited to short-haul regional routes and smaller airports.
The acquisition positions Air T as a key player in Australia’s regional aviation sector at a time when connectivity remains critical for regional economies. For Rex, the deal offers a path forward after months of uncertainty, combining private capital with government support to preserve jobs, restore services, and ensure continued air links for communities that rely heavily on regional flights.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com