Regional air carrier Rex is to be bought by US air services company Air T by the end of the year that will keep its turboprop aircraft fleet flying.
The move was welcomed by the Australian Airports Association (AAA).
The company says it signed a sale and implementation deal with the federal government that will restructure the airline’s financial arrangements, confirmed by Federal Transport Minister Catherine King.
“The government welcomes these announcements, which mark a positive step towards bringing Rex out of voluntary administration,” she says.
King says the financial restructuring “will allow Rex (Airlines) to keep flying and maintain critical aviation links for regional communities”.
“As the sale process is still under way, the Australian Government will not comment further at this time,” she says.
The company says the purchase should allow the airline’s operations to continue, grow and retain its workforce.
It noted that about 50% of its routes are not serviced by any other airline.
“Air T likes the Rex Saab 340 program and will be funding Rex’s engine renewal program and returning its fleet to service,” the US company says.
It noted that the deal is still subject to creditor and Federal Court approvals; media reports say Rex creditors may not be paid.
AIRPORTS ASSOCIATION ON REX DEAL
The AAA welcomed the news of the agreement.
“This is a significant development for regional aviation and provides much-needed certainty for communities that rely on essential air services,” AAA CEO Simon Westaway says.
“Reliable air connectivity is vital to the social and economic wellbeing of regional Australia. This outcome helps safeguard access to those services.”
Westaway also wants the new owners to maintain service standards, protect regional routes and ensure “fair” treatment of regional airports.
“Many regional airports are under financial pressure; we call for (a) renewed focus on sustainable funding models …”
- In May, an Australian Competition and Consumer Commission (ACCC) report estimated that Rex had reduced its seat capacity on regional (9.3%) and remote (6.8%) from July 2024 to March 2025.
Of the domestic routes operated by major domestic airlines in March 2025, Qantas had 107 routes then Jetstar (62 routes), Virgin Australia (60 routes) and Rex (31 routes).
The ACCC noted that the regional air carrier’s route network fell from 44 to 31 in July 2024 when it stopped servicing major cities but retains its regional and remote routes.
The airline’s departure from these city routes saw 90% of monthly passengers now flying with Qantas or Virgin, the ACCC notes.
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