American aviation holding company Air T has agreed to acquire Rex - Regional Express (ZL, Wagga Wagga), which has been under voluntary administration since July 2024.

The transaction was first reported by the Sydney Morning Herald and subsequently confirmed by the carrier's administrators.

The deal will allow the new owners to recapitalise the Australian airline. Administrators said that no return to shareholders was expected, although further details will be shared ahead of the upcoming creditors' meeting. The transaction remains subject to customary closing conditions.

Air T told ch-aviation that it expected the transaction to close by the end of 2025.

"This acquisition aligns with our deep experience in regional aircraft, and long-term commitment to the sustainable growth of our portfolio of powerful businesses. We have high confidence in the quality of Rex Regional’s management team and employees. We like the Saab 340 program," CEO Nick Swenson said.

Rex administrator EY and financial advisor Houlihan Lokey have been seeking a buyer since the airline's collapse. The administration period has been extended three times, most recently until December 5, 2025, to finalise a transaction.

Under the proposed acquisition, Air T is expected to assume control of Rex's operations and maintenance infrastructure. Based in the United States, Air T operates aviation businesses including FedEx Express (FX, Memphis International) feeder services through Mountain Air Cargo (MTN, Kinston) and CSA Air (IRO, Iron Mountain/Kingsford), as well as aircraft leasing, maintenance, and parts trading. It also owns an aircraft storage facility at Kingman, a source of spare parts for the Saab 340B fleet that forms the backbone of Rex's operations.

Rex currently operates fifty-seven Saab 340-series turboprops - twenty-two Saab 340Bs and thirty-five Saab 340B(Plus) - and the aircraft's age and limited parts availability have been central to its financial difficulties. Air T's access to Saab components and overhaul capacity is therefore considered strategically important.

Rex entered administration after expanding from its traditional regional operations into domestic trunk routes, taking on significant debt to compete with Qantas (QF, Sydney Kingsford Smith) and Virgin Australia (VA, Brisbane International). It continues to operate a reduced regional network under federal government support, following a AUD130 million Australian dollars (USD84.4 million) bailout and additional funding to maintain essential services.

The Albanese government, which acquired AUD50 million (USD32.5 million) of Rex's debt earlier this year to ensure continued operations, has said future support will depend on commitments to maintain regional connectivity and fiscal responsibility. It had previously indicated that it would take over the airline if no buyers were found.

“Any potential government support for a successful bidder will be conditional on commitments to provide an ongoing, reasonable level of service to regional and remote communities,” transport minister Catherine King said, as reported by The Sydney Morning Herald.

The sale concludes a protracted search for a buyer after bids from US-based distressed asset investor Anchorage Capital Advisors and Australian investment fund Renaissance Partners earlier this year failed to progress. Both were among the parties reportedly involved in the process, though other undisclosed bidders may also have participated.