Wedoany.com Report on Feb 5th, US aviation company Air T recently held talks with the Australian government to discuss the future development plans for its acquired regional airline, Rex. Australian Transport Minister Catherine King revealed to the media at Parliament House that Air T completed the acquisition of Rex for $172.5 million last December and made significant commitments to the government regarding improving regional aviation connectivity.

According to the agreement, the Australian government provided financial support for Rex's operations. In exchange, Air T guaranteed to increase the number of aircraft returning to service and maintain the stable operation of regional passenger flights. The government also retains a security interest in Rex's fleet to prevent asset sales. Catherine King stated, "In recent talks, Air T demonstrated a firm determination to return Rex to its core mission of genuinely serving Australia's regional aviation market." She added, "We look forward to this company establishing itself in Australia's passenger market and believe it has the potential for profitability and growth."

Regarding the government's financial support, the Minister clarified that no specific repayment schedule has been set yet. The government assumed $108 million in debt and provided $60 million in assistance, which is expected to be gradually repaid once Rex returns to profitability. Catherine King emphasized, "We are committed to supporting Rex in the long term to ensure its continued operation on regional routes, and Air T has made corresponding commitments in this process." Air T, a US company with over 40 years of operational experience, has businesses spanning aircraft trading, leasing, parts, and cargo services. The company stated it would invest $50 million in restructuring, planning to increase the number of Saab aircraft from the current 31 to 44 by mid-2027, and explicitly stated it would not directly compete with Qantas and Virgin Australia.