Investors within a US-based group spanning a number of aviation businesses have indicated plans to acquire Australian operator Regional Express Holdings, which entered administration last year.
The investors are part of a US firm known as Air T, which has more than 15 independently-operating businesses across the commercial aircraft, engines, spares, air cargo and ground-support equipment sectors, as well as digital interests.
Air T says it has entered a structured agreement – a sale and implementation deed – and expects to close the acquisition of Rex by the end of the year, subject to creditor and other approvals.
It states that it has been working with Rex’s administrators as well as the Australian government, the airline’s secured lender, to find a solution.
Rex had been operating Boeing 737 and Saab 340 services until last year when it entered voluntary administration and ceased its 737 flights.
Australian transport minister Catherine King has welcomed the acquisition plan, describing it as a “positive step”, and states that the government is participating in a related agreement to restructure Rex’s financing arrangements.
“This will allow Rex to keep flying and maintain critical aviation links for regional communities,” she says.
Air T says the acquisition plan envisions “continuation and growth” of the regional airline, and “continuing employment” for its personnel.
It points out that Rex has an “essential role” in connecting Australian locations, adding that about half its routes are not flown by other carriers.
Air T states that it “likes” the airline’s Saab 340 operation and will fund engine renewals and restoration of the fleet.
Administrator Ernst & Young had indicated earlier this year that several parties were interested in the sale process for the carrier, and had sought an extension to its voluntary administration as a result.
Air T claims its “long-term investment horizon” as well as its regional aircraft experience, and its commitment to the carrier, contributed to its selection as an acquisition partner.
The company, which is based in Minneapolis, was set up in 1980 and invested in a North Carolina company called Mountain Air Cargo.
It subsequently expanded with the establishment of express cargo company CSA Air, and both operations served as FedEx feeders. They use over 100 aircraft, including some 20 ATR 72 and 42 turboprops, and 80 Cessna 208 and SkyCourier models.
But Air T has also branched into other aviation sectors, including maintenance and aftermarket with Royal Aircraft Services and Contrail Aviation Support, plus several other companies, as well as supply of ground-support equipment such as de-icing vehicles and catering trucks.
Over its last full financial year, to 31 March 2025, Air T generated revenues of nearly $292 million, the vast majority from its commercial aircraft and air cargo activities, although the company made a net loss of $5 million.
