Regional airline Rex has a US buyer, the announcement on Tuesday night coming more than a year after the airline that operates numerous services in Queensland entered voluntary administration.

Air T — a Nasdaq-listed US aviation business that runs cargo services, an aircraft trading business and sells parts – has entered a sale and implementation deed with Rex administrator EY.

“The sale and implementation deed is subject to customary conditions precedent for a transaction of this type including receipt of regulatory approvals and approval by creditors,” the administrators’ announcement said.

The federal government has been propping up the airline to ensure regional and remote communities remain serviced, buying $50 million in debt and loaning up to $80 million.

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Transport Minister Catherine King said Tuesday’s announcement marked a positive step toward bringing the airline out of voluntary administration.

“This will allow Rex to keep flying and maintain critical aviation links for regional communities,” King said.

Rex plunged into voluntary administration in July 2024, after a failed bid to compete with rival airlines on capital city routes. While Rex services most states, it relies heavily on Queensland Government funding to service seven regional routes, which cover places such as Richmond, Hughenden, Roma, Birdsville, Winton, Boulia, and Normanton.

The estimated return to the airline’s creditors is being determined, no return to shareholders was expected and the company is no longer listed on the Australian Securities Exchange.

The federal government has reached an agreement with Air T around restructuring financing arrangements in connection with the acquisition.

-with AAP