UPDATE: In a significant move, creditors of Regional Express Holdings Limited have just approved a Deed of Company Arrangement (DOCA) proposed by Air T. This decision, made during the Second Meeting of Creditors, sets the stage for Air T to acquire the Rex Group, which operates vital regional air services across Australia.
The approval, announced by EY Parthenon, marks a critical turning point for the Rex Group. The transition of operational control is expected to be finalized before mid-December 2025. This deal ensures that the Rex Group will continue its operations, servicing 54 airports throughout Australia, while maintaining employment for its dedicated staff.
Sam Freeman, an EY Parthenon Partner and Joint Administrator, emphasized the DOCA as a superior outcome for stakeholders involved. He stated, “This agreement not only secures ongoing employment for the Rex Group’s employees but also ensures continued services connecting remote and regional communities.”
In addition to the regional airline operations, Air T will also take control of the Australian Airline Pilots Academy (AAPA) and the Aviation service provider Australian Aero Propellor Maintenance (AAPM). The deal further includes the popular Rex Flyer frequent flyer program, which has garnered a loyal customer base.
However, not all entities within the Rex Group are being retained. Creditors have voted to place Rex Airlines Pty Ltd, responsible for the 737 capital city network, into liquidation. This component was not included in Air T’s acquisition proposal, indicating a significant restructuring within the organization.
Freeman acknowledged the unwavering support from staff, passengers, suppliers, and the Australian Government during the Voluntary Administration process. He expressed gratitude for their role in maintaining seamless passenger services over the past 15 months, stating, “We wish to thank all of the staff who have ensured the seamless continuation of regular passenger services, customers who have continued to support Rex, and suppliers who have backed the business.”
As the Rex Group prepares for this transition, stakeholders are optimistic about the future of regional air travel in Australia. The acquisition by Air T is poised to revitalize operations, ensuring connectivity for many communities that rely on these essential services.
What’s Next: The next steps involve satisfying the conditions of the DOCA, upon which Air T will officially take ownership. Stakeholders are advised to stay tuned for further announcements as this situation develops, with significant implications for regional travel across Australia.
