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A $130M taxpayer-backed deal to rescue Australia’s regional airline Rex is advancing, pending approval.
A proposed $130 million taxpayer-backed rescue of Australia’s regional airline Rex is advancing after U.S. company Air T agreed to acquire it, pending creditor approval.
The deal aims to stabilize Rex’s operations by leveraging Air T’s access to Saab aircraft and spare parts, potentially improving service reliability.
The federal government has already provided $50 million in debt purchases and up to $80 million in loans to maintain essential flights.
Transport Minister Catherine King welcomed the sale, though she did not confirm if fares would drop or if public funds would be repaid.
Experts caution that Rex’s prior expansion into major city routes contributed to its collapse, urging a focus on restoring profitability in existing regional networks.
The Transport Workers Union is demanding job and route guarantees, while opposition leaders seek clarity on future services and pricing.
Final outcomes depend on creditor approval and restructuring terms.
Un acuerdo de 130 millones de dólares respaldado por los contribuyentes para rescatar a la aerolínea regional australiana Rex está avanzando, a la espera de su aprobación.