General News
12 November, 2025
Rex's sale to US aviation business cleared for take-off
The embattled airline has a new owner, who is expected to take the reins before Christmas.
Regional airline Rex's sale to a US buyer has been ticked off, paving the way for new ownership to take over as soon as December.
More than a year after the cash-strapped carrier went into voluntary administration, creditors voted in favour of the airline's sale to American aviation investor Air T on Tuesday.
The embattled airline has since been propped up by the federal government so its regional and remote routes could keep operating. The government bought $50 million of Rex's debt while also lending it $80 million.
The administrators' announcement did not indicate what return creditors would receive from the sale, nor any return shareholders could expect to see from the sale.
Rex is no longer listed on the Australian Securities Exchange.
Creditors also voted to liquidate the capital city arm of Rex's business, with Air T not proposing to buy it.
Rex's downfall was driven by its expansion into capital city routes, where it failed to compete with its major rivals.
Administrator Sam Freeman said Air T was expected to assume operational control of Rex by mid-December.
"We wish to thank all of the staff who have ensured the seamless continuation of regular passenger services over the past 15 months, customers who have continued to support Rex ... and the Australian government who have provided extensive support to enable this outcome," he said.
North West Queensland Regional Organisation of Councils (NWQROC) chair Barry Hughes said the group was cautiously optimistic about the acquisition and the opportunities it presented for Rex to refocus on delivering reliable and consistent air passenger services throughout the region.
“Reliable air connectivity is essential to our communities. We rely on dependable air services for business, tourism, access to health and education, and overall liveability,” the Etheridge Shire mayor said.
“Air passenger services are critical to our communities, which includes some of the nation’s most remote and vulnerable. They play a direct role in supporting local businesses, attracting workforce and investment, and ensuring residents remain connected to the services they need.
“We are ready to get behind this next chapter for Rex, recognising the great opportunities that are available for its new owners to harness with continued improvement and investment in the regions.
“We acknowledge the support of the Albanese government and Minister Catherine King in working towards a positive outcome for regional aviation during this administration process."
The federal government backed Air T's bid and said the sale was a win for regional communities.
"Air T's bid was endorsed by the government and includes a support package comprising a loan of up to $60 million and a restructuring of existing Australian government debt," Ms King said on Tuesday.
"In exchange for this support, Air T has agreed to a range of commitments aimed at preserving essential regional aviation connectivity and improving Rex's governance arrangements."
Rex's regional business flies between 54 Australian airports, including the Gulf, North West and western Queensland.
Air T owns air cargo, commercial aircraft and ground support equipment businesses.