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An American firm may be poised to buy Rex and finally end its administration, according to reports.
Sources have told The Australian Financial Review that Nasdaq-listed Air T has put together a bid for the regional airline, which went under last year following the collapse of its domestic jet business, and that the proposal is being looked at by Prime Minister Anthony Albanese.
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A deal – which the Financial Review said could be signed as soon as Monday – would see Rex return to commercial hands and avoid nationalisation.
On its website, Air T, whose business arms 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,” the company says.
“Currently we are organised by 4 core business segments consisting of 16 businesses that span a variety of industries, employing over 500 team members nationwide.”
In particular, Air T 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.
While the lawsuit by Jet Midwest, filed post-administration, has been dismissed, the Financial Review speculated that this was where Rex had first entered Air T’s radar.
A sale to Air T would put an end to the ambitions Australian consortium Renaissance Partners has had for Rex, having repeatedly said it would buy the airline and turn it into the regional arm of a revived TAA as part of its plans to create a third major domestic carrier.
Renaissance had, at the end of August, submitted a binding offer to the federal government – Rex’s largest creditor – despite being knocked back several times by administrator EY Australia and its sales agent Houlihan Lokey.
The federal government has previously indicated it would look into purchasing Rex itself if the current sale process falls through, making it the first nationalised airline in Australia since the privatisation of Qantas in the 1990s.
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.
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says:Like most of us, I will watch very closely, – a bold move