Air T, Inc. closed its acquisition of Regional Express Holdings Limited (Rex) on December 17 2025, with the completion announced the following day. The deal gives Air T 100 % ownership of Rex for a nominal cash consideration of $1.00, and the company assumes all of Rex’s existing liabilities, which total approximately A$108 million.
The transaction structure includes a $50 million AUD credit facility that Air T has provided to Rex to fund fleet expansion, and an additional undrawn $60 million AUD loan from the Australian government that will support maintenance and operations. Rex remains a secured creditor of the Commonwealth of Australia, and the Federal Court of Australia approved the transaction on December 11 2025.
Strategically, the acquisition marks a pivot for Air T from its traditional niche services—dry‑leasing aircraft to FedEx and ground‑support equipment—to a scheduled passenger airline. By adding Rex’s network of 31 regional aircraft, pilot training academies, and a propeller maintenance facility, Air T gains immediate access to a broad domestic route network and the ability to grow the fleet to 45 aircraft within two years, thereby diversifying revenue streams and reducing concentration risk tied to its FedEx relationship.
Financially, Air T reported FY 2024 revenue of $291.85 million with a net loss of $6.14 million, while Q3 FY 2025 revenue rose 22 % to $77.9 million and operating income reached $1.8 million. Rex had been operating under significant financial pressure, reflected in its A$108 million liability load. The acquisition is expected to stabilize Rex’s balance sheet, unlock synergies in maintenance, procurement, and operations, and provide Air T with a new growth engine.
Management emphasized the long‑term value of the deal. CEO Nick Swenson said, “Rex serves communities that depend on reliable air service, and we are committed to ensuring the airline operates on a sustainable basis for the long term. This acquisition aligns with our strategy of investing in essential aviation businesses with strong fundamentals, great management teams and meaningful roles in their markets.” Former Rex CEO Neville Howell added, “The acquisition by Air T marks not just the resolution of a challenging chapter, but the beginning of a revitalised one. It is the outcome of disciplined planning, principled decision‑making and an unwavering commitment to the regional communities we exist for.”
The deal positions Air T to tap into Australia’s growing demand for regional air travel, leverage shared expertise, and strengthen its competitive position. By integrating Rex’s operations, Air T can achieve cost efficiencies, broaden its service portfolio, and reduce reliance on a single large customer, setting the stage for sustainable long‑term growth.
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