Air T to Acquire Rex Airlines, Deal Expected to Close by Late 2025
US aviation holding company Air T has reached an agreement to acquire Regional Express, better known as Rex, which has been under voluntary administration since July 2024. The deal was initially reported by local media and later confirmed by the airline’s administrators. The acquisition is intended to recapitalise the carrier, although administrators noted that shareholders are not expected to receive a return. Further details will be outlined ahead of a creditors’ meeting, and the transaction is still subject to standard closing conditions. Air T expects the sale to be finalised by the end of 2025.
Air T CEO Nick Swenson said the acquisition aligns with the company’s long-term strategy focusing on regional aviation. He expressed confidence in Rex’s management and workforce, highlighting the Saab 340 fleet as an operational strength. Air T owns Mountain Air Cargo and CSA Air, both of which operate feeder services for FedEx Express, along with aircraft leasing, parts trading, and an aircraft storage facility in Kingman that supplies Saab 340 components.
Rex currently operates 57 Saab 340-series turboprops and has faced financial strain due to aging aircraft and limited access to spare parts. Air T’s ability to supply components and maintenance capacity is expected to be strategically valuable. Rex previously expanded beyond regional markets into domestic trunk routes, which increased debt and contributed to its collapse. The Australian government has supported the airline to maintain essential regional services and has said any future assistance will depend on ensuring continued connectivity and responsible financial management.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com