Rex confirms new ownership as King Island air services continue

Regional Express Airlines (Rex) has confirmed it is now operating under new private ownership following the completion of a Deed of Company Arrangement (DOCA, providing certainty for passengers using the airline’s vital air link between King Island, Melbourne Airport and Tasmania.

Administrators from Ernst & Young confirmed on 18 December that all shares in Regional Express Holdings Limited had been transferred to Air T Rex Acquisition Inc, formally ending the Rex Group’s period in external administration and placing the airline under a newly appointed board of directors.

The administrators said Rex will continue to trade on a “business-as-usual” basis under its new owners, with management focused on minimising disruption to flight operations and regional services.

The change in ownership follows approval by the Federal Court on 11 December, with no objections lodged by shareholders. The Australian Securities and Investments Commission also granted approval for the transfer, which saw former shareholders exit the company with shares transferred for nil value.

In correspondence to creditors and members, administrators said existing contractual arrangements remain unchanged and suppliers have been advised not to cancel orders. Invoices for goods and services provided after 18 December will be paid directly by the Rex Group under its new ownership.

The DOCA also established a Rex Group Creditors’ Trust to manage pre-appointment claims. While no dividend will be paid to ordinary unsecured creditors of the parent companies, dividends are expected for certain employee entitlements and some subsidiary creditors, with further advice to be issued in the new year.

Rex plays a critical role in maintaining reliable air access for island and regional communities, including King Island, and administrators said the airline’s focus is now on stability and continuity as it moves forward under new ownership.

Rex has daily flights between King Island and Melbourne and operates services to Devonport on weekdays.