Creditors Approve Air T’s Offer to Buy Regional Express

By Andrew Curran.

Air T will acquire Australia’s Regional Express (Rex) after creditors approved the NASDAQ-listed company’s offer to buy the insolvent airline.

Rex’s creditors gave the offer the nod on November 11, 2025. The impending deed of company arrangement will see Air T take ownership of Rex’s regional scheduled passenger business, the Australian Airline Pilots Academy, MRO business Australian Aero Propeller Maintenance, and the airline’s frequent flyer scheme.

Five Regional Express entities, including the Australian Stock Exchange listed Regional Express Holdings Limited, were placed in administration in July 2024. This followed a series of strategic mis-steps, including a decision to start B737-800 flights, that resulted in significant financial losses.

Since then, a trio of administrators from Ernst & Young, have attempted to find a buyer for Rex, which continues to operate its Saab 340 regional flights, thanks to Australian Government support.

Last month, Air T stepped up with an AUD50 million (USD 32.6 million) offer to buy Regional Express, along with a promise to keep the airline flying.

Australian Government backs Air T's offer to buy Regional Express

The Australian Government, by now Rex’s largest creditor, having taken over debts worth AUD50 million and made available ongoing financing to keep Rex in the Air, came to the party. Subject to creditor’s approving Air T’s offer, the government agreed to carry forward Rex's existing debts and provide a new commercial loan.

“Air T’s bid was endorsed by the government and includes a support package comprising a loan of up to AUD60 million (USD39.2 million) and a restructuring of existing Australian Government debt,” said Transport Minister Catherine King.

“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 Airlines Pty Ltd, the entity behind the failed B737-800, will be liquidated.

Administrator Sam Freeman said Air T’s offer was a “superior outcome for stakeholders with ongoing employment for the continuing employees of the Rex Group.”

“On behalf of the administrators, 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 through the voluntary administration, suppliers who have continued to support the business, and the Australian Government who have provided extensive support to enable this outcome,” he said.

Rex's suppliers bank on future business opportunities

As the largest creditor, and having financed Rex during its administration, the government will retain its first ranking security over all Rex’s aircraft and simulator. Rex’s unsecured creditors such as airports and suppliers, will do less well from the sale, receiving nothing from Air T. However, most creditors held the view that they would also receive nothing if the airline was liquidated. But its ongoing operation, under new ownership, potentially opened future business opportunities.

Regional Express’s Saab 340 network plays an important role connecting many of Australia’s smaller and more remote towns to the capital cities. In many cases, Rex is the only airline serving the local airport, with their flights playing an important public service role.

The Australian Government became involved, even proposing to nationalise the airline if no buyer eventuated, because it would be politically untenable for the flights to end.

Ernst & Young expects to finalise the sale of Regional Express to Air T by the end of 2025.

Photo: AI-Generated.