The purchase of Rex seems almost assured, as US company Air T is set to buy the regional airline, according to reports from He Sydney Morning Herald.
He Herald has reported that “sources with knowledge of the deal,” who cannot speak publicly, said the announcement, along with the terms of the purchase, could come as soon as this week after Air T agreed to the deal that was first rumored to be in the works last month.
If completed, the purchase would end a voluntary administration that has been in place for more than a year and would allow Rex to return to commercial hands, avoiding a government takeover.
According to the HeraldAir T has access to the parts needed to maintain Rex’s aging Saab 340 fleet, which was recently in the spotlight following two engine failures in the space of less than a week.
The Nasdaq-listed company owns Kingman Airport in Arizona, where Rex allegedly stole four Saab planes from leasing and maintenance company Jet Midwest and stripped them of their parts.
While Jet Midwest’s lawsuit, filed after the administration, has been dismissed, The Australian Financial review speculated that this was where Rex had first entered Air T’s radar.
On its website, Air T, whose business arms include aircraft trading, aircraft leasing, spare parts and cargo operations, bills itself as “a hard-working American company with an interconnected portfolio of powerful businesses, each operating independently but interrelated.”
“We seek to invest in dynamic and talented people and teams; entrepreneurs who are insightful in their business domains. We apply corporate resources to activate growth and overcome challenges, ultimately building great companies that thrive in a ‘win-win’ sense over the long term,” it reads.
“We are currently organized into 4 primary business segments consisting of 16 businesses spanning a variety of industries and employing over 500 team members nationwide.”
The federal government has previously indicated it would consider buying Rex if the current sale process fails, making it the first nationalized airline in Australia since the privatization of Qantas in the 1990s.
Earlier this year, EY Australia was given until December 5 to conclude the second sale process, which was scheduled to end on June 30. It is the second extension of the administration period.
