Australian carrier Rex sold to Air T

American company Air T has sealed a deal with the administrators of Regional Express Holdings Limited (Rex), which operates the regional airline in Australia. Air T expects to close the acquisition of Rex by year-end if creditor and other approvals are obtained. Air T has been working closely with the administrators and the Australian government, Rex’s secured lender, to develop a solution that best serves the interests of all stakeholders. To support the implementation of the acquisition, Air T and the Commonwealth of Australia have entered into an agreement pursuant to which Rex’s financing arrangements will be restructured in connection with the acquisition. The proposed acquisition contemplates a continuation and growth of Rex’s regional airline business and continuing employment for its workforce. Rex plays an essential role in connecting regional Australian communities. Approximately 50% of Rex’s 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. Air T will work to ensure Rex will continue to operate on a sustainable basis, thereby providing critical services to regional Australians. Air T believes it was selected to acquire the company in part because of its long-term investment horizon, experience in regional aircraft, and commitment to stabilising and growing Rex. The transaction remains subject to certain other approvals, including approval by Rex’s creditors and the Federal Court of Australia. Established in 1980, Air T, Inc. is a portfolio of businesses and financial assets, each of which is independent yet interrelated. Its core segments are overnight air cargo, ground support equipment, commercial aircraft, engines and parts, and digital solutions. “We seek to expand, strengthen and diversify Air T’s after-tax cash flow per share. Our goal is to build Air T’s core businesses, and when appropriate, to expand into adjacent and other industries. We seek to activate growth and overcome challenges while delivering meaningful value for all stakeholders,” Ait T said. For Editorial Inquiries Contact: Editor Matt Driskill at [email protected] For Advertising Inquiries Contact: Head of Sales Kay Rolland at [email protected]