Rex looks set to be saved from administration, with US aviation company Air T reportedly landing a deal to take over the beleaguered regional airline.
It has continued flying regional routes after being bailed out by the federal government to the tune of $130 million, but now looks set to exit administration.
Rex looks set to be saved from adminstration. (Supplied/Rex)
Both the Australian Financial Review and Sydney Morning Herald have reported the Nasdaq-listed Air T has reached an agreement to buy Rex, 15 months after it collapsed.
”It’s relatively small, with a total value of about $100 million,” 9News finance editor Chris Kohler said.
The takeover is yet to be formally announced by either Air T or Rex.
“We don’t have the specifics of this takeover offer yet – price, timeline, operational changes – but it may end up coming with government support, provided the new owners continue to connect regional and remote Australia with the capital cities,” Kohler said.
Rex has continued operating regional flights after government intervention. (Getty)
“But certainly, positive signs that Rex will survive. We could have details of the terms of the deal as early as this week.”
After carving out a niche for itself by serving regional Australia, in 2021 the airline sought to take on its much larger rivals by offering flights between capital cities.
However, Rex became the latest casualty of the Australian airline industry dominated by Qantas and Virgin on July 30, 2024, when it cancelled all its flights between major cities and grounded its entire fleet of Boeing 737 aircraft.
Its collapse came shortly after that of fellow challenger Bonza, which failed in May 2024, little more than a year after it had launched.
Virgin Australia had also entered administration during the pandemic, but has since emerged and recently re-listed on the Australian stock exchange.