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Rex is set to leave voluntary administration and avoid a government takeover after being sold to a US-based buyer.
Administrator EY Australia announced on Tuesday evening that the airline will be bought by American firm Air T, a deal which had been all but confirmed by reporting in the Sydney Morning Herald earlier this week.
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“As outlined in Rex’s ASX release on 17 June 2025, the Administrators have received a number of offers from interested parties in connection with the process for the sale and/or recapitalisation of the Group,” the administrators wrote.
“Having considered those offers as part of the sales process, the Administrators are pleased to confirm they have now entered into a Sale and Implementation Deed with Air T, Inc., which will result in the sale and recapitalisation of the business operations conducted by the Group.
“No return to shareholders is anticipated. An update will be provided ahead of the second meetings of creditors of the Group which is currently anticipated to be held within the current convening period of the administration.”
In a statement, a spokesperson for Federal Transport Minister Catherine King said the announcement is a “positive step towards bringing Rex out of voluntary administration”.
“The Australian Government has also entered into an agreement with Air T in relation to restructuring Rex’s financing arrangements in connection with the acquisition,” the spokesperson said.
“This will allow Rex to keep flying and maintain critical aviation links for regional communities.
“As the sale process led by the Administrators is still underway, the Australian Government will not comment further at this time.”
According to the Herald, Air T has access to parts needed for the upkeep of Rex’s ageing Saab 340 fleet, which was in the spotlight recently following two engine malfunctions in the span of less than a week.
The Nasdaq-listed company is the owner of Kingman Airport in Arizona, which is where Rex had allegedly stolen four Saab planes from leasing and maintenance firm, Jet Midwest, and stripped them for parts. The lawsuit by Jet Midwest, filed post-administration, has been dismissed.
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.
More to follow.
