US aviation firm reportedly set to take over Australia’s Rex Airlines
A little-known US aviation company could soon become the savior for regional travel across the Australian outback.
According to multiple Australian media, Air T has secured a deal to take over Regional Express (Rex).
Rex is the cash strapped regional airline that links numerous outback towns.
It went into administration last year with large debts.
It has been able to continue flying regional routes thanks to more than a $100 million government bailout.
Rex’ survival is essential for the air mobility of rural Australia especially to, from and within the outback.
The airline’s troubles were exacerbated when it attempted to compete with the big two airlines – Qantas and Virgin Australia – on mainline big city routes.
It later acknowledged this was a mistake.
Details on the deal could be released this week.
Air T operates various aviation divisions in the US, including charter and maintenance services.
It also operates some FedEx services.
It also owns a boneyard and has supply chain access to hard to find aircraft parts which would help keep Rex’ old Saab 340 aircraft running.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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