Air T to Finalize Acquisition of Australian Airline Rex Airlines
Australian regional airline Rex Airlines, previously known as Regional Express, is set to emerge from administration and avoid government intervention following its sale to a U.S.-based aviation firm. The airline entered administration in June 2024 after an unsuccessful attempt to operate a fleet of ten Boeing 737-800s on major Australian routes, competing with Qantas and Virgin Australia.
On October 21, 2025, the airline’s administrator, EY Australia, announced that a deal had been finalized with Air T, a U.S. aviation group. This agreement allows Rex to leave administration after a challenging 15-month period. Under the proposed arrangement, Air T will take over Rex’s entire operations along with its aircraft maintenance services.
Air T, which is listed on NASDAQ, is a prominent aviation holding company in the United States that operates in various sectors of aviation services. It runs Mountain Air Cargo for FedEx Express from Memphis International Airport (MEM) and has additional interests in aircraft leasing, maintenance, and aircraft parts trading.
Furthermore, Air T owns a substantial aircraft storage facility at Kingman Airport (IGM) in Arizona, where numerous Saab 340s are kept in long-term storage. This aspect of the deal is critical since Rex faces challenges with its aging fleet of 57 Saab 340 turboprops, averaging 31.2 years in age. Recent incidents of engine failures have been attributed to the fleet’s age.
Since entering administration, Rex has sought an investor to regain stability. The administration process has already been extended three times to facilitate reaching a satisfactory agreement. The current administration period is set to conclude on December 5, 2025.
During this administration, Rex has managed to keep operating its regional network with support from the Australian federal government, amounting to AUD 130 million (US$84.4 million) in bailout funds along with additional support for vital services connecting remote communities to larger urban areas. The airline’s survival is deemed essential for maintaining air travel access in rural Australia, particularly for outback routes.
“As noted in Rex’s ASX release on June 17, 2025, the administrators received several offers from prospective buyers,” stated EY Australia. “After reviewing multiple proposals during the sales process, we are pleased to announce that we have entered into a Sale and Implementation Deed with Air T, Inc., leading to the sale and restructuring of business operations.”
“No return to shareholders is expected. Further updates will be provided ahead of the upcoming meeting of creditors, which is anticipated to occur within the current administration period,” according to the EY Australia statement.
According to coverage by Australian Aviation, a spokesperson for Federal Transport Minister Catherine King remarked that this development is a “positive step towards bringing Rex out of voluntary administration.” The Australian Government has also partnered with Air T to restructure Rex’s financing arrangements in connection with the acquisition, aiming to ensure the airline can continue its operations and preserve essential aviation links for regional communities.
On its official site, Air T promotes itself as “an industrious American company” with a diverse portfolio of businesses that function both independently and interrelatedly. “We aim to invest in talented individuals and teams who demonstrate insight in their respective fields. Our focus is on leveraging corporate resources to facilitate growth and navigate challenges, ultimately fostering long-term successful enterprises,” the site emphasizes.
A brief history of Rex Airlines
Rex Airlines commenced operations on August 2, 2002, following the merger of Hazelton Airlines and Kendell Airlines. The airline quickly specialized in connecting smaller regional airports across southern and eastern Australia, amassing a fleet of nearly 60 Saab SF340 turboprops.
In March 2021, Rex sought diversification by operating flights between Australian state capitals, attempting to compete with Qantas and Virgin Australia using a fleet of ten Boeing 737-800s. Unfortunately, the strategy backfired, draining financial resources and forcing the company to seek administrative assistance to secure its future.
