US-based aviation group Air T poised to take over Australia’s Rex Airlines
October 21, 2025
US-based aviation company Air T has reportedly agreed a deal to acquire Australian regional carrier Rex Airlines (formerly known as Regional Express).
Should it receive creditor approval, the deal would see the airline exit administration and continue to serve regional and lifeline flights linking rural communities to major airports throughout Australia.
A brief background to Rex Airlines
Rex Airlines’ first flight was on 2nd August 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.
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.
However, this move (which the airline later admitted was a strategic mistake) led to the airline incurring significant losses and ultimately caused the company to appoint administrators in June 2024.
Rex slides into administration
The administrators, Ernst and Young, swiftly despatched the 737s back to their lessors, along with the trunk routes operation, returning Rex to its regional network origins.
Since then, 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.
In the meantime, Rex has continued to operate its regional network under Australian federal government support, following a AUD130 million Australian dollar (USD84.4 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.
Details of Air T’s proposed acquisition
Under the proposed acquisition, which could be completed as early as the end of October 2025, 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.
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 is being seen as a strategically important part of the deal with Air T, as it has access to a substantial inventory of parts for Rex’s aging fleet of 57 Saabs, which, according to Planespotters.net, has an average age of 31.2 years.
As reported by Chris Kohler, the Finance editor at 9News Australia, “[The deal] is relatively small, with a total value of about $100 million.”
“We do not have the specifics of this takeover offer yet – price, timeline, operational changes,” he added, “but it may end up coming with government support, provided the new owners continue to connect regional and remote Australia with the capital cities. But certainly, positive signs that Rex will survive.”
Possible Australian government involvement
In June, the federal government told The Sydney Morning Herald that any ongoing government support being supplied to any successful bidder for Rex would be “conditional on commitments by that bidder to provide an ongoing, reasonable level of service to regional and remote communities, the need to provide value for money to taxpayers, and good governance”.
The government also said that if a buyer is not found by the deadline, then it would be prepared to take over Rex itself to guarantee the continuation of lifeline air transport services throughout Australia
“Any potential government support for a successful bidder will be conditional on commitments to provide an ongoing, reasonable level of service to regional and remote communities,” Transport Minister Catherine King told The Sydney Morning Herald.
How big is Rex Airlines?
Based at Wagga Wagga Airport (WGA) in New South Wales, where the carrier also has its main maintenance base, Rex operates 22 Saab 340Bs and 35 Saab 340B+ aircraft, which seat between 34 to 36 passengers in a single class configuration.
According to ch-aviation, the airline currently operates 115 routes serving 57 destinations across Australia.
Although many of the routes it serves are exclusive, Rex’s main competitor is Qantas Link, which it has accused of predatory action through pricing and encroaching on Rex-operated routes during its time under administration.
Featured image: Pettys / stock.adobe.com
