Rex Group creditors voted to approve the purchase at the second creditors meeting yesterday, ending more than 15 months of uncertainty for the struggling carrier.
Following the signing of a Deed of Company Arrangement (DOCA), Rex will officially exit administration and Air T will take over operational control and legal ownership, once administrators EY Parthenon finalise the legal proceedings needed for the deal.
The DOCA only applies to the regional arm of Rex, which operates Saab 340 aircraft in 54 airports across Australia, not Rex Airlines Pty Ltd, which ran the carrier’s 737 capital city network and was voted by creditors to be placed into liquidation.
However, Air T will take over Rex’s training school the Australian Airline Pilots Academy, aviation service provider Australian Aero Propellor Maintenance and loyalty program, Rex Flyer.
The Minneapolis-based company plans to stabilise Rex’s operations, address maintenance backlogs, and gradually increase the airline’s active fleet from around 30 to 44 aircraft. Air T also aims to retain Rex’s management team and recruit additional pilots and engineers to boost flight capacity.
EY Parthenon Partner Sam Freeman said the deal is the best outcome for staff, customers, and suppliers, allowing Rex’s regional flights to continue running.
