U.S. company Air T is seeking to acquire Rex Airlines, which has entered voluntary administration, with plans to stabilize operations and meet creditor obligations.

Information on the Target

Rex Airlines, an Australian regional carrier, has recently entered into voluntary administration, prompting its creditors to seek clarity regarding outstanding debts. This administrative process has become necessary as the airline struggles financially, making it unable to meet its obligations to numerous creditors, including local government councils. The sale of Rex Airlines is now on the table, with the U.S. air services company Air T confirming its intention to acquire the beleaguered airline.

Despite the transition, many creditors remain uncertain about their chances of recovering the sums owed to them, which amount to millions of dollars. Air T’s acquisition plan, dependent on creditor approval, aims to stabilize Rex Airlines and ensure its operations can continue serving regional Australia effectively.

Industry Overview in Australia

The airline industry in Australia, particularly for regional carriers, has faced significant challenges in recent years, compounded by economic strain and the lasting impacts of the global pandemic. Regional Express, known as Rex Airli