Business
22 October, 2025
Rex Airlines to be sold to American company
Routes in the Gulf and Western Queensland could be secured in the long-term under the agreement.
After a prolonged period of uncertainty, regional carrier Rex Airlines has secured a buyer.
Administrators from Ernst & Young (EY) announced that US-based aviation firm Air T had entered into a binding sale and implementation agreement, subject to customary regulatory and creditor approvals.
The sale follows Rex entering voluntary administration in July last year with around $500 million in debt, after its ambitious and ultimately unsuccessful expansion into metropolitan jet services.
EY said in a statement: “We are pleased to confirm we have now entered into a sale and implementation deed with Air T … which will result in the sale and recapitalisation of the business operations conducted by the group.”
Federal Transport Minister Catherine King welcomed the transaction as a critical step to maintain service for regional communities.
“When markets fail or struggle to deliver for regional communities, the government has a role to ensure people do not miss out on opportunities, education and critical connections,” she said.
However, the outcome for the airline’s creditors and shareholders remains grim.
Despite the sale, EY warned there will be no return to shareholders and repayment prospects for the 4000-plus creditors remain uncertain.
“This agreement secures the future of Rex’s operations, but it does not mean everyone will recover their losses,” an EY spokesperson added.
The federal government has played a significant role in keeping Rex afloat during the sale process, acquiring $50 million of Rex’s debt and extending operational support to prevent regional flight disruptions.
The move ensured flights continued to remote and regional areas throughout the administration period.
For regional travellers, the deal offers relief that Rex may continue flying under new ownership, preserving vital links to smaller towns and remote communities.
As the transaction awaits final creditor and regulatory approvals, attention now turns to how Air T will invest in fleet renewal and stabilise the airline’s regional network.