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Peak bodies for Australia’s airlines and airports have welcomed the news that Rex has found a buyer.
Airlines for Australia and New Zealand (A4ANZ) and the Australian Airports Association (AAA) have congratulated administrator EY Australia and the federal government for the pending sale of Rex to American firm Air T, which will end a lengthy voluntary administration period.
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Air T has pledged to return Rex’s Saab 340 fleet to service, much of which is grounded due to parts shortages and other supply chain issues.
A4ANZ Chair Professor Graeme Samuel AC said the announcement is a “significant and welcome step forward in securing the future of Rex”.
“Rex plays a vital role in maintaining robust competition within the airline industry, particularly for those travellers to and from rural and regional areas,” he said.
“I thank the Australian Government for its tenacity in keeping Rex flying and thereby protecting the airline’s vital regional and rural links.
“This is encouraging news for Australian consumers, and particularly those communities serviced by Rex. It’s also positive news for Rex’s dedicated employees who have continued flying during the airline’s administration.”
Simon Westaway, CEO of the AAA, said the deal “provides much-needed certainty for communities that rely on essential air services”.
“Reliable air connectivity is vital to the social and economic wellbeing of regional Australia. This outcome helps safeguard access to those services,” he said.
“We await further detail on how the transition will be managed and look forward to engaging constructively with government and industry to support a smooth and sustainable path forward.
“We urge the incoming owners to maintain service standards, protect regional routes, and ensure fair treatment of regional airports and the communities they serve.
“Many regional airports are under financial pressure, and we call for renewed focus on sustainable funding models that ensure critical aviation infrastructure can continue to serve regional communities effectively.”
On its website, Air T, the business arms of which include aircraft trading, aircraft leasing, parts, and freight operations, bills itself as “an industrious American company with a networked portfolio of powerful businesses, each who operate independently yet interrelatedly”.
“We seek to invest in dynamic, talented individuals and teams; insightful doers in their business domains. We apply corporate resources to activate growth and overcome challenges – ultimately building great enterprises that flourish by ‘win-winning’ over the long-term,” it reads.
EY Australia was earlier this year given until 5 December to wrap up the second sale process, which was slated to end on 30 June. It is the second extension to the administration period.
The Regional Aviation Association of Australia declined to comment at this stage.
