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Rex was attempting to sell four aircraft operating key regional routes before entering administration, Australian Aviation can reveal.
The aircraft have all flown multiple times this week, and were listed for sale despite the carrier cutting services earlier this year because of a lack of aircraft parts and labour.
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After being contacted by Australian Aviation, administrator EY Australia confirmed the four Saab 340Bs, registered VH-RXE (pictured above), VH-ZLX, VH-ZJS, and VH-ZRH, were advertised through global firm C&L before the administrator took control of the airline, but have since been taken off the market.
Rex entered administration in July, halting its 737 capital city services but maintaining its regional connections serviced by its smaller aircraft. Later, in August, Transport Minister Catherine King pledged the government would reimburse customers should their flights not ultimately take off.
The airline currently has a fleet of around 57 Saab 340Bs with an average age of 30.2 years. Thirty-four of these are in active service and the rest are parked; it is not known why Rex attempted to sell aircraft that were in the skies rather than those not in active operations.
C&L, which is currently selling more than 100,000 737NG parts on behalf of EY, declined to comment on the Saab sales. The sale of the 737-800 inventory looks to be a final confirmation of the end of Rex’s domestic capital-city services and is being conducted as part of the administration process.
The jet inventory includes a CFM56-7 engine, auxiliary power unit, landing gear, and other fast-moving parts. It will be marketed through C&L’s sales team and listed on ILS, PartsBase, and Aeroxchange for outright sale.
“With our roots in Australia, we have a long-standing relationship with Rex,” said Chris Kilgour, CEO of C&L Aviation Group.
“C&L was the natural choice to assist in the disposal of these [737-800] assets. With over 5,000 active 737NG aircraft flying worldwide, this inventory is in high demand.”
Rex has continued service on its regional network despite the axing of its domestic jet operations after it entered voluntary administration, with Virgin Australia having picked up the leases on three of its former 737-800s.
The federal government has been helping the airline’s regional flights stay in the air as administrators work to sell the business, guaranteeing that Rex regional passengers “will fly or get their money back” and moving to safeguard its important take-off slots at Sydney Airport.
EY Australia last month won approval in the Federal Court to extend its appointment as administrator until 25 November as it continues a sale process. Administrator Sam Freeman said shortly after his appointment that EY wanted to present sale options to creditors within 25 working days.
“It’s very much our intention not to have a prolonged administration period,” he said.
Rex had posted a $3.2 million loss for the first half of the 2023–24 financial year, down from a $16.5 million loss in the first half of 2023.
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says:Whilst it might well be correct to accept that “Rex” has, in times past, played a major part in the support of our regional residents I think it is now time for the curtain to fall and the next scene to begin with a new script and cast. Seriously, who would buy an enterprise in such a seriously negative financial state with it’s almost vintage fleet of which almost 50% is AOG? that would indicate only one direction to head: liquidation and fast.