A little-known US aviation company could soon become the savior for regional travel across the Australian outback.
According to multiple Australian media, Air T has secured a deal to take over Regional Express (Rex).
Rex is the cash strapped regional airline that links numerous outback towns.
It went into administration last year with large debts.
It has been able to continue flying regional routes thanks to more than a $100 million government bailout.
Rex’ survival is essential for the air mobility of rural Australia especially to, from and within the outback.
The airline’s troubles were exacerbated when it attempted to compete with the big two airlines – Qantas and Virgin Australia – on mainline big city routes.
It later acknowledged this was a mistake.
Details on the deal could be released this week.
Air T operates various aviation divisions in the US, including charter and maintenance services.
It also operates some FedEx services.
It also owns a boneyard and has supply chain access to hard to find aircraft parts which would help keep Rex’ old Saab 340 aircraft running.
