Australia’s major airline and airport bodies have welcomed the news that Rex has found a buyer.
Australian and New Zealand Airlines (A4ANZ) and the Australian Airports Association (AAA) have congratulated administrator EY Australia and the federal government on the pending sale of Rex to US company Air T, which will end a long period of voluntary administration.
Air T has committed to returning Rex’s Saab 340 fleet, much of which is grounded due to parts shortages and other supply chain issues, back into service.
Professor Graeme Samuel AC, president of A4ANZ, said the announcement is a “significant and welcome step forward in securing the future of Rex”.
“Rex plays a vital role in maintaining strong competition within the airline industry, particularly for those travelers to and from rural and regional areas,” he said.
“I thank the Australian Government for its tenacity in keeping Rex flying to protect the airline’s vital regional and rural links.
“This is encouraging news for Australian consumers, and particularly those communities served by Rex. It is also positive news for the dedicated Rex employees who continued to fly during the airline’s administration.”
Simon Westaway, AAA chief executive, said the agreement “provides much-needed certainty for communities that rely on essential air services.”
“Reliable air connectivity is vital to the social and economic well-being of regional Australia. This outcome helps safeguard access to those services,” he said.
“We await further details on how the transition will be managed and look forward to engaging constructively with government and industry to support a smooth and sustainable path forward.
“We urge the incoming owners to maintain service standards, protect regional routes and ensure fair treatment of regional airports and the communities they serve.
“Many regional airports are under financial pressure and we call for a renewed focus on sustainable funding models that ensure critical aviation infrastructure can continue to serve regional communities effectively.”
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.
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.
The Australian Regional Aviation Association declined to comment at this time.
