Mayor Greg Stocks and Albany MLA Scott Leary hopeful about Rex Airlines purchase by US-aviation company Air T

Albany leaders have said they are encouraged by the news that an American buyer has been found for the flailing Rex Airlines, after the company’s collapse into administration last year left locals fearful they would be stranded. Rex, which serves as the only public air link to and from the Great Southern, will soon be taken over by Nasdaq-listed US aviation company Air T. The sale was confirmed by administrators Ernst and Young on Tuesday. The news comes 15 months after the beleaguered airline first entered voluntary administration in July 2024. Air T — which operates FedEx flights and charter services — also serves in the aircraft aftermarket and maintenance supply chain, meaning they have the parts required to service and repair Rex’s 57-strong fleet of ageing Saab planes. City of Albany mayor Greg Stocks said it was “encouraging” to hear positive updates regarding the future of the region’s sole aviation link. “Reliable air services are vital for regional growth and accessibility, so we are hopeful this development leads to a sustainable outcome for Rex and the communities it serves,” he said. “We will be watching closely as details of the sale emerge, but the signs are promising for regional aviation.” The Federal Government has supported the airline with more than $130 million to keep regional flights in the air as the deadline for EY to find a buyer was pushed out further. It has also acquired a portion of Rex’s $500m debt it owed to 4800 creditors — one of which is the City of Albany, which is owed $456,000, as well as the Shire of Esperance, which is short $440,587. Mr Stocks, who previously lashed the airline for its “incompetence”, said the city had not yet been advised about the money Rex owed the city. “At this stage, we have not received any formal advice regarding the repayment of the debt owed to the city, and we will need to continue to wait on the results of the administration,” he said. “Moving forward, we will also work closely with the relevant parties to ensure any future agreements include safeguards that protect the city’s interests and minimise the risk of being left in a similar position again.” An EY spokesperson said though no return is anticipated for shareholders, a report will be prepared detailing the estimated return to creditors. The purchase will be subject to a vote of Rex creditors. Albany MLA Scott Leary said the news was a “welcome relief” for those who depended on Rex for essential travel out of the region. “The past year has exposed how fragile our regional air links can be when contracts are mismanaged and accountability is lacking,” he said. “The sale and recapitalisation of Rex provides an opportunity to reset and rebuild trust with regional Western Australians.” Mr Leary, who slammed the airline for its “systematic failings” last month, said he hoped the sale would result in a “stronger, more reliable service” for the region. “This sale cannot simply be a change of ownership on paper — it must deliver meaningful improvements for passengers,” he said.