The Australian Government has thrown its support behind Air T’s plan to acquire and recapitalise Rex Airlines (Rex). Under the proposal, Air T will inject AUS$50 million into the carrier, while the Government will restructure existing debt and provide a new commercial loan of up to AUS$60 million to strengthen the airline’s finances.
In return, Air T has agreed to maintain essential regional air services across Australia. The Government has also confirmed it will vote in favour of Air T’s proposal at the second meeting of creditors.
Air T, based in Minneapolis, is a publicly listed aviation group with more than four decades of experience. It owns 15 aviation businesses covering operations, maintenance, leasing, parts distribution, manufacturing, and data services.
Under the turnaround plan, Air T aims to stabilise Rex’s operations and clear a maintenance backlog that has grounded several aircraft. It plans to retain the carrier’s existing management team and recruit new pilots and engineers to expand flight capacity. Leveraging its global parts network, Air T intends to ensure reliable servicing for the carrier’s Saab aircraft.
The company has also committed to improving Rex’s governance, operational performance, and financial stability. Over time, Rex is expected to increase its active fleet from around 30 aircraft to 44, boosting the frequency of profitable routes. Air T will collaborate with state governments to protect regional connectivity, ensuring that communities dependent on Rex remain linked to the wider transport network.
The Government will receive regular performance reports from Rex, including updates on these regional service commitments. Additionally, new Australian independent directors will join the Rex board to strengthen oversight and governance. Rex Airlines Saab 340 © AirTeamImages
