Rex Airlines Saved as Creditors Approve Air T Takeover

Rex Airlines has secured its future after creditors approved the Air T takeover, ensuring the airline continues to serve regional Australia. The move guarantees jobs, maintains critical air links, and restores confidence in the country’s regional aviation sector.

Under the deed of company arrangement (DOCA), Air T will take ownership of Regional Express Holdings (Rex) before Christmas 2025. EY-Parthenon, the administrator overseeing the process, confirmed that the transfer of control and ownership should finish by mid-December.

Details of the Rex Airlines Air T Takeover

The takeover covers several core Rex operations, including:

The regional network serving 54 airports with Saab 340 aircraft
The Australian Airline Pilots Academy (AAPA)
Aviation maintenance firm Australian Aero Propeller Maintenance (AAPM)
The Rex Flyer frequent flyer program

EY-Parthenon partner Sam Freeman said the agreement delivers “a superior outcome for stakeholders.” It protects hundreds of jobs and ensures ongoing services to regional communities. However, creditors also voted to liquidate the separate Rex Airlines entity that managed the Boeing 737 network between capital cities, which was not part of the DOCA.

Government Support and Regional Relief

The Australian government has endorsed the deal with a financial assistance package designed to stabilise the airline. Transport Minister Catherine King announced a loan of up to $60 million and a restructuring of existing government debt. In return, Air T committed to maintaining regional air services and improving Rex’s corporate governance.

Several regional airports are also creditors. Albany Regional Airport in Western Australia is owed about $456,000, while Esperance Shire is owed around $440,000. Although repayment remains uncertain, local councils welcomed the continuation of flights.

Albany Mayor Greg Stocks said the city depends on consistent air travel. “We are pleased services will continue, but we want them to be excellent,” he said. “Reliable and affordable flights are vital for regional cities.”

Esperance Shire President Ron Chambers agreed, saying dependable air connections are critical for residents who travel for work or medical care. “Regional areas must have stable airline services,” he said.

Union Backs the Air T Acquisition

The Transport Workers Union (TWU) welcomed the Air T acquisition, calling it a significant win for regional workers and communities. TWU National Secretary Michael Kaine said the agreement ends months of uncertainty for airline employees.

“It will be a relief to regional Australia that these routes have a guaranteed future,” he said. “We look forward to building a constructive relationship with Air T and ensuring the new owners uphold commitments to workers and regional services.”

Future of Regional Aviation

Rex entered voluntary administration in July 2024 after taking on $50 million in debt from its largest creditor, PAG. Aviation management consultant Trevor Jenson said the takeover marks a vital turning point for Australia’s regional transport sector.

“Regional air services are essential,” Jenson explained. “The challenge is to ensure smaller centres continue to receive regular and affordable flights, not just the major routes.”

The Rex Airlines Air T takeover represents more than a financial rescue. It restores regional connectivity, preserves employment, and strengthens trust in the national aviation network. As the airline transitions to new ownership, Australians can expect continuity in essential services that link the nation’s remote towns and cities.