As Traveltalk reported yesterday, the North Carolina-based air services company has struck a deal to take Rex out of administration and allow it to keep flying.
The official announcement came late last night but administrators warned the deal doesn’t guarantee any recompense to the 4,800 creditors who are still owed some $500 million.
“The administrators are pleased to confirm they have now entered into a sale and implementation deed with Air T which will result in the sale and recapitalisation of the business operations conducted by the group. No return to shareholders is anticipated,” administrators Ernst and Young said in a statement.
Rex Airlines was placed into administration in July with the federal government later providing $80m in loans to keep its regional routes operating.
The Transport Workers Union welcomed the news but said assurances must be made by Air T to safeguard its vital regional routes, as well as workers’ pay and conditions.
“With little known about Air T’s plan for Rex’s critical routes, there are still significant questions here around jobs and the continuation of services long-term,” said Michael Kaine, TWU National Secretary.
“The Federal Government must ensure it extracts further commitments from Air T on routes and services, and good jobs.”
The TWU will now seek a meeting with Air T to pursue commitments around employee entitlements and answers on the future expansion of the airline, guarantees of routes and services, and diversification of its fleet.
“Regional Australia has been left behind too frequently when it comes to aviation, and now more than ever we need certainty into the future for Rex,” added Mr Kaine.
“Air T’s long-term plan for Rex must involve growing these critical services and investing in the airline, which crucially means good jobs for workers.”
