US aviation group Air T to complete buyout of Australian carrier Rex Airlines  

Australian regional airline Rex Airlines, formerly known as Regional Express, is set to leave administration and avoid a government takeover after being sold to a US-based aviation group. The airline entered administration in June 2024 after a disastrous foray into operating a fleet of ten Boeing 737-800s on Australian trunk routes to compete with the likes of Qantas and Virgin Australia.

The airline’s administrator, EY Australia, announced on October 21, 2025, that a deal had been reached with the US-based aviation firm Air T that will see the carrier exit the administration process after 15 months. Under the proposed acquisition, Air  T is expected to assume control of Rex’s entire operation as well as its aircraft maintenance functions.

NASDAQ-listed Air T is a major aviation holding company in the United States with operations in several areas of aviation services. It operates services as Mountain Air Cargo on behalf of FedEx Express from the courier company’s worldwide hub at Memphis International Airport (MEM). It also has interests in aircraft leasing, maintenance, and the trading of aircraft parts.

Seth Jaworski / ShutterstockAdditionally, the company also owns a large aircraft storage facility at Kingman Airport (IGM) in Arizona, where numerous Saab 340s are in long-term storage. This was reportedly seen as a crucial part of the deal, as Rex has an aging fleet of 57 Saab 340 turboprops that have an average age of 31.2 years. The carrier has suffered two engine failures in recent weeks, which commentators put down to the age of the fleet and the engines themselves.  

Since going into administration in June 2024, the administrators have been seeking an investor for Rex. The administration period has already been extended three times to allow a deal to be completed. The latest administration period expires on 5th December 2025.

While in administration, Rex has continued to operate its regional network under Australian federal government support, following a AUD130 million (US$84.4 million) bailout and additional funding to maintain vital services from remote communities to major population centres. Rex’s survival is seen as essential for the air mobility of rural Australia, especially on routes within the outback.

Ryan Fletcher / Shutterstock“As outlined in Rex’s ASX release on June 17, 2025, the Administrators have received several offers from interested parties in connection with the process for the sale and/or recapitalisation of the Group,” EY Australia said in a statement.

“Having considered several 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,” said the EY Australia statement.  

“No return to shareholders is anticipated. An update will be provided ahead of the second meeting of creditors of the Group, which is currently anticipated to be held within the current convening period of the administration.”

As reported by Australian Aviation, 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 agreed 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.”

Ryan Fletcher / ShutterstockOn its own 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 of which operates 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-win’ over the long term,” the website reads.

A brief history of Rex Airlines

Rex Airlines’ first flight was on August 2, 2002, when the company commenced operations, created through the merger of two regional carriers, Hazelton Airlines and Kendell Airlines. The airline developed a specialism for operating between smaller regional airports across south and east Australia and built up a fleet of almost 60 Saab SF340 turboprops.

Rex AirlinesHowever, in March 2021, the carrier diversified into operating flights between the Australian state capitals to take on Qantas and Virgin Australia with a fleet of ten Boeing 737-800s.

Against stiff competition and unable to match the proposition or frequencies offered by its stronger competitors, the move quickly backfired and drained Rex of crucial financial resources, leaving it in such a vulnerable position that administrators had to be called in to secure the company’s future.The post US aviation group Air T to complete buyout of Australian carrier Rex Airlines   appeared first on AeroTime.

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