Australian Government provides financing details to support Air T acquisition of Rex Airlines
Australia's Minister for Infrastructure Catherine King announced (04-Nov-2025) details of the financing the Australian Government will provide to support the prospective sale of Rex Airlines to Air T Inc. The carrier's existing debt will be restructured to the Australian Government, with approximately AUD90 million (USD58.4 million) of existing debt to be carried forward and a new commercial loan of AUD60 million (USD39 million) to be provided to Rex. This will supplement the AUD50 million (USD32.5 million) being contributed by Air T towards the recapitalisation of the business. In exchange, Air T has agreed to a range of commitments aimed at preserving essential regional aviation connectivity and improving governance arrangements. This will include returning more aircraft to service and increasing the frequency of profitable flights across the Rex network. The Government will retain its security over all of Rex's aircraft and its simulator, ensuring the Saab fleet cannot be sold without the Government's permission and will continue to service communities across regional and remote Australia. [more - original PR]
Background ✨
Air T Inc entered into a sale and implementation deed with Rex Airlines' administrators and expected to close the acquisition by the end of 2025, subject to creditor and other approvals. Air T planned to fund Rex's engine renewal programme and return its Saab fleet to service, with the agreement envisaging continued employment for Rex's workforce and growth of its regional business1. The government welcomed these developments as steps toward Rex exiting voluntary administration2.