The US firm seeking to buy Rex Airlines believes the
existing fleet of Saab 340s can continue to fly because “although the airframes are old, the parts and engines are only half as old”.
Aviation holdings company Air T has signed a sale and implementation deed with administrators EY with the intention of assuming control of Rex from mid-December.
A committee of creditors meeting held on Thursday heard Air T was committed to the existing fleet and was targeting a total of 47 Saab 340s, up from the current 31 that are airworthy.
The fleet has an average age of more than 30 years, but it appeared Air T has no intention of replacing the aircraft with newer planes, stating on Tuesday that it “liked the Saab 340”.
Sources at the meeting said Air T justified the decision to not replace the fleet, declaring that although the airframes were old, the engines and parts were half their age.
The company intends to maintain servicing Rex’s network of regional and remote towns, and keep the current management team in place.
Sources said Air T wanted growth but did not share details of any future plans for the airline.
It was confirmed that unsecured creditors would get nothing out of the deal – which has angered airports, many of which are owed millions of dollars by Rex.
There was particular frustration about the fact the federal government paid $50m to
“buy the debt” of Rex’s Asian-based investor, PAG, but left regional airports out of pocket.