The administrators of Australian Regional Express (Rex) have reached an agreement with US-based holding company Air T to acquire the airline.

Air T has entered into a Sale and Acceptance deed, and expects to close the acquisition of Rex by year-end if creditor and other approvals are obtained.

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The American firm has been working closely with the Administrators and the Australian Government, Rex’s secured lender, to develop a solution that best serves the interests of all stakeholders. To support the implementation of the acquisition, Air T and the Commonwealth of Australia have entered into an agreement pursuant to which Rex’s financing arrangements will be restructured in connection with the acquisition.

The proposed acquisition contemplates a continuation and growth of Rex’s regional airline business and continuing employment for its workforce.

Rex plays an essential role in connecting regional Australian communities. Approximately 50% of Rex’s routes are not serviced by any other airline. Air T likes the Rex Saab 340 programme and will be funding Rex’s engine renewal program and returning its fleet to service.

The transaction remains subject to certain other approvals, including approval by Rex’s creditors and the Federal Court of Australia.