The administrators of Australia’s Regional Express (Rex) announced that creditors have voted in favor of a Deed of Company Arrangement (DOCA), leading to the approval of US-based Air T as the new owner. This transition is expected to be completed by mid-December, transferring operational control and ownership of key regional services.
Air T will take over the regional business, which services 54 airports across Australia using Saab 340 aircraft, along with a pilot training school, maintenance services, and a frequent flyer program. The move aims to ensure continuity of regional connectivity and employment for Rex staff.
Government Support and Future Commitments
The Australian government will support Air T through a package that includes a loan of up to $60 million and restructuring existing debt. Transport Minister Catherine King emphasized that the support aims to preserve essential regional air services and improve governance within Rex.
"The DOCA provides a better outcome for stakeholders, including ongoing employment and regional connectivity," said Sam Freeman, EY Parthenon Partner.
The restructuring comes amidst Rex’s liquidation of its capital city operations, which were not included in the DOCA plan. The transition underscores the government’s role in stabilizing and supporting regional aviation in Australia.
