REX is poised to fall into American hands after several media reports cited sources confirming US aviation business Air T has agreed to buy the ailing carrier (TD breaking news).
While no public announcement has been made by Rex’s administrators EY, the Nasdaq-listed Air T is believed to be close to confirming the deal, which was speculated to be before Prime Minister Anthony Albanese to formally sign off on last month (TD 19 Sep).
The Arizona-based Air T currently operates cargo flights for blue chip brands like FedEx, as well as a range of B2B services such as aircraft trading, leasing, and engine parts spaces.
Crucially, Air T has access to spare parts needed to keep Rex’s ageing fleet of Saab 340 aircraft operational, which are becoming an increasing cost burden to the Aussie carrier as it scrambles to maintain repairs and obtain suitable replacement parts.
Air T also owns operations and facilities that will help Rex fast-track any needed repairs.
According to the AFR, one source claimed Air T may only need to pay an acquisition price if certain profit thresholds are met within the first 18 months of the Rex purchase.
Rex was forced to abandon its Boeing 737 capital city routes when it went into administration in Jul last year, and since then has serviced a select number of regional routes using its Turboprop planes thanks to ongoing government support. AB
