Rex Creditors Approve Air T Acquisition to Secure Airline’s Future
Creditors of Regional Express Holdings (Rex Group) have approved a Deed of Company Arrangement (DOCA) proposed by U.S.-based aviation holding company Air T, paving the way for the acquisition of Rex – Regional Express. The vote, held on November 11, clears the way for Air T to assume operational control and legal ownership before mid-December 2025.
The acquisition covers Rex’s core regional network, which serves 54 airports across Australia with its fleet of Saab 340B turboprops. Also included are the Australian Airline Pilots Academy (AAPA), aviation component specialist Australian Aero Propeller Maintenance (AAPM), and the Rex Flyer loyalty program.
However, Rex Airlines Pty Ltd—the entity that operated Rex’s short-lived Boeing 737-800 fleet—is excluded from the deal. Creditors voted to place this arm of the business into liquidation, officially ending the carrier’s attempted entry into Australia’s competitive domestic trunk routes after just three years.
Rex Group entered voluntary administration on July 30, 2024, following financial strain from its ambitious domestic jet expansion. Despite this, the airline’s essential regional services continued uninterrupted thanks to significant government funding throughout the 15-month administration.
The Air T acquisition is supported by a major Australian government package that includes a new AUD 60 million (USD 39.3 million) loan and the restructuring of approximately AUD 90 million (USD 59 million) in existing debt. In return, Air T has committed to maintaining critical regional air connectivity and plans to restore Rex’s operating fleet to forty-seven Saab 340B and Saab 340B(Plus) aircraft over the next 10 to 15 years.
Administrator Sam Freeman of EY Parthenon said the outcome “provides a superior result for stakeholders,” highlighting widespread support from employees, customers, suppliers, and government partners during the restructuring process.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com