The administrators of Australia’s Regional Express (Rex) announced creditors voted in favour of a Deed of Company Arrangement (DOCA) proposed by US-based Air T that will see Air T emerge as the new owner.
Once the transition is completed, Air T will have operational control and ownership by around mid-December. Air T will take over:
- The regional business servicing 54 airports across Australia operated by Saab 340 aircraft
- Pilot training school The Australian Airline Pilots Academy (AAPA)
- Aviation service provider Australian Aero Propellor Maintenance (AAPM)
- Frequent Flyer business Rex Flyer
EY Parthenon Partner Sam Freeman said that the DOCA provides a superior outcome for stakeholders with ongoing employment for the continuing employees of the Rex Group, ongoing trading with suppliers and continuation of the Rex Regional Business connecting remote and regional communities. “On behalf of the administrators, we wish to thank all of the staff who have ensured the seamless continuation of regular passenger services over the past 15 months, customers who have continued to support Rex through the Voluntary Administration, suppliers who have continued to support the business and the Australian Government who have provided extensive support to enable this outcome,” said Freeman.
Creditors voted to place Rex Airlines Pty Ltd, the entity that operated Rex’s 737 capital city network, into liquidation. This entity was not part of the Air T DOCA proposal.
Air T will also receive Australian government support. Transport Minister Catherine King said in a statement that the government’s assistance “includes a support package comprising a loan of up to $60 million and a restructuring of existing Australian government debt”.
In exchange for this support, Air T has agreed to a range of commitments aimed at preserving essential regional aviation connectivity and improving Rex’s governance arrangements.
For Editorial Inquiries Contact:
Editor Matt Driskill at matt.driskill@asianaviation.com
For Advertising Inquiries Contact:
Head of Sales Kay Rolland at kay.rolland@asianaviation.com
