Rex Sells National Jet Express Stake
Regional Express Holdings Limited (Rex) has confirmed the sale of its 50% stake in National Jet Express (NJE) to entities controlled by other shareholders of the charter operator. The sale, which was disclosed in an Australian Stock Exchange (ASX) filing on December 2, marks a significant move in the ongoing financial restructuring of Rex.
National Jet Express, based in Adelaide, specializes in fly-in, fly-out (FIFO) charter flights for the mining and resources sector. Rex acquired its 50% stake in NJE in 2022, as part of a broader strategy to diversify its revenue streams and enter the lucrative FIFO market. The remaining shares were held by entities associated with Rex, including its then-chairman Lim Kim Hai. This acquisition was part of Rex’s efforts to tap into the growing demand for FIFO services.
However, the airline’s plans took a turn in 2023 after its attempt to enter scheduled Boeing 737-800 operations faced challenges. Following financial difficulties, Rex called in administrators from Ernst & Young, and the company has since been selling off its assets, including NJE and Pel-Air Aviation. Despite the challenges faced by the parent company, both National Jet Express and Pel-Air Aviation remain profitable.
The recent changes in ownership of National Jet Express include Lim Kim Hai increasing his stake to 55%, while Tjoa Thian Song now holds a 45% share. Lim Kim Hai also continues to serve as the chairman of the company. Alexander Ananian-Cooper, NJE’s executive director of business development, remains a director. Although the exact sale price was not disclosed in the ASX filing, it is expected to be revealed to creditors as part of the usual process.
The proceeds from the sale of the National Jet Express shares will be used by Rex to settle secured debts, according to the ASX filing. This marks a critical step in the restructuring process, as Rex aims to address its financial obligations and focus on its core scheduled services.
National Jet Express operates a fleet of 21 aircraft, including four BAe 146-300(QT) aircraft, ten DHC-8-Q400s, and seven Embraer E190s. The carrier continues to provide essential services for the FIFO market, which remains a crucial part of Australia’s mining and resources sector.
Rex, which continues to operate scheduled turboprop services with support from the Australian government, remains focused on its restructuring efforts. The business is still on the market, with the aim of securing its long-term viability amid ongoing financial challenges.
This sale of Rex’s stake in National Jet Express is a key part of the airline’s efforts to streamline its operations and reduce debt, while still maintaining a presence in the competitive FIFO market.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com