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Canberra Backs Air T’s Rex Takeover, Tightens Safeguards on Saab Fleet

The government will vote for the sale after reshaping Rex’s debts to secure restored regional services.

Overview

  • Under the package, $90 million owed to the government shifts to a profit‑sharing arrangement and a new commercial loan of up to $60 million supports engine care and maintenance.
  • Air T will inject A$50 million to recapitalise Rex and aims to lift the active Saab 340 fleet from roughly 30 to 44 aircraft by clearing maintenance backlogs.
  • To protect the public stake, the government will retain security over all Rex aircraft and the simulator, require performance reporting, and appoint new independent Australian directors.
  • Ordinary unsecured creditors, including many regional airports, are slated to receive no return, with a separate relief program for affected airports capped at $5 million.
  • A creditors’ vote is set for 11 November, with the government signaling support, as industry groups urge broader assistance for other regional airlines through loans, guarantees or tax measures.