Air T Enters Agreement to Acquire Rex Airlines

A collective step forward to strengthen regional aviation & support Australian communities

Air T Enters Agreement to Acquire Rex

A collective step forward to strengthen regional aviation & support Australian communities

WHAT'S GOING ON

On Oct 20, 2025, Air T, Inc. (NASDAQ:AIRT) announced it entered into a Sale and Implementation Deed (SID) to acquire Regional Express Holdings Limited (Rex), Australia’s leading regional airline. The acquisition — expected to close by year-end pending approvals — represents a strategic commitment by Rex, the Australian Commonwealth, EY, and Air T to strengthen essential regional air connectivity.

WHO IS AIR T

We Are Industrious

Air T is a publicly traded holding company (NASDAQ: AIRT) with 15 aviation businesses. We have a long-established strategic relationship with FedEx. We are skilled aviation people like the people at Rex.

Established 40 Years

Air T is deeply rooted in aviation. Our suite of businesses across the aviation industry include 2 FedEx feeder airlines, a ground support equipment manufacturer, an aircraft lessor, aircraft parts traders, and 2 aviation data companies.

Our Investment Approach

Air T’s leadership is a tight-knit and capable team who has worked together for many years. We invest to build aviation businesses for the long run and focus resources to activate growth and overcome challenges. 

Supporting Strong Teams, Doing Great Work

A Return to Classic Rex

Rex plays an essential role in keeping regional Australia connected. That’s something we at Air T deeply admire and want to help preserve for the long term.  

1. Why did Air T decide to acquire Rex?
Rex Airlines is a high-quality regional carrier that plays an essential role in connecting communities across regional and remote Australia. Air T was drawn to Rex because of its strong management team, skilled workforce, and its legacy of reliable service to rural communities.

Our mission aligns closely with Rex’s: to sustain and grow essential regional air connectivity.

This acquisition allows Air T to:

  • Support and invest in a proven operator with deep community roots. 
  • Restore the full Saab 340 fleet to “Classic Rex” levels. 
  • Provide the capital, global supply-chain expertise, and long-term investment horizon needed for sustainable growth. 

We’re proud to be part of helping Rex return to full strength.

2. Who is Air T?
Air T, Inc. is a publicly listed aviation holding company headquartered in Minneapolis, USA.

Founded more than 40 years ago, Air T owns 15 independent aviation businesses spanning aircraft operations, maintenance, leasing, parts distribution, manufacturing, and data services.

Our portfolio includes two FedEx feeder airlines, several aircraft parts traders and MRO businesses, ground support equipment manufacturing, and aviation technology and data companies.

Each of our businesses operates autonomously but benefits from shared financial, legal, and operational resources provided by the Air T platform.

3. What is Air T’s overall investment philosophy towards Rex?
Air T believes in localism — a balance between autonomy and accountability.

That means Rex will continue to operate independently, making the right decisions for its business, customers, and communities.

We are not here to impose “the Air T way.” Our role is to support, not control.

We view ourselves as a platform that enables talented aviation leaders to thrive by providing resources, capital, and expertise when needed.

4. What are Air T’s immediate plans for Rex?
Our immediate focus is on growth — what we call the “Return to Classic Rex” initiative. That means:

  • Restoring all 47 Saab 340s to service. 
  • Rebuilding the full network of regional routes. 
  • Hiring additional pilots and engineers. 
  • Investing in operational excellence and long-term fleet sustainability. 

We are entering growth mode, not contraction. We will be hiring and investing, not cutting.

5. Will Rex remain independent?
Yes. Rex will remain a stand-alone entity with its current management team in place.

Air T has high confidence in Rex’s leadership and operational team. Our goal is to help the management committee achieve their vision for growth and sustainability.

6. How will the integration process work?
Integration at Air T focuses on information and support, not control. Put simply, that means ensuring timely, accurate access to financial and operational information so Air T can provide support when needed.

Rex already has a capable team with public-company experience, which will make this transition smooth and collaborative.

7. What will happen to existing routes and services?
All existing routes and essential services will continue.

The Rex management team will work to bring the full fleet online and maintain its core network of regional flights — the same routes that have served Australians for years.

Air T is fully committed to the continuation and strengthening of regional connectivity in Australia. That’s what makes Rex special, and it’s why we’re here.

8. What happens to current Rex staff?
All current employees are being retained, and Rex plans to hire more.

As the Saab 340 fleet returns to service, Rex will expand its workforce in both operations and engineering.

Air T’s philosophy is about growth, not downsizing for the sake of downsizing.

If you’re a pilot or engineer we want you on board. Invite your friends to join us.

9. What are the plans for the Saab 340 fleet?
The Saab 340 is a core strategic advantage for Rex.

Air T and Worthington Aviation (an Air T company) are among the world’s leading suppliers of Saab 340 parts and maintenance support.

We have the expertise and resources to keep the fleet flying safely for another 10 to 15 years.

Worthington Aviation has supported Rex’s Saab fleet for nearly 20 years — and that partnership will now deepen even further.

10. Will Air T make major changes to Rex’s brand or culture?
No. Air T deeply respects what makes Rex unique — its culture, community ties, and operational excellence.

Rex will keep its name, identity, and people. Air T’s job is to provide resources, not rewrite the playbook.

This is Air T’s first fully Australian operation, and we intend to preserve the qualities that have made Rex successful for decades.

11. What is “Classic Rex”?
“Classic Rex” refers to the pre-pandemic state of the airline when the full Saab 340 fleet was flying and regional routes were fully operational.

The Return-to-Classic Rex initiative is about restoring that full capacity and service reliability while maintaining the airline’s high safety and customer-service standards.

12. What experience does Air T have operating airlines?
Air T’s subsidiaries Mountain Air Cargo and CSA Air are both certified Part 135/121 carriers operating more than 100 turboprop aircraft for FedEx, with over 40 years of safe, reliable service.

Air T also owns MRO facilities, leasing businesses, and aircraft parts companies that collectively manage the full lifecycle of regional aircraft. While we have not previously owned a passenger airline, our operational and technical experience in regional aviation is deep and directly relevant.

13. How will this acquisition affect Rex’s relationship with the Australian Government?
Air T and Rex have worked closely with the Commonwealth throughout the restructuring process. The federal government has been firm but fair in ensuring that the interests of Australians and regional communities are protected.

Specific terms of any financing or restructuring agreements remain confidential.

14. Will Air T repay outstanding federal loans to Rex?
We cannot comment on specific financing arrangements.

We can, however, confirm that Air T is committed to maintaining Rex’s operations on a sound and sustainable financial footing.

15. What does this mean for regional communities and passengers?

For passengers and regional communities, the message is simple:

Rex is here to stay and grow.

Our goal is for Rex flights to remain reliable, regional connectivity to be strengthened, and the return of the full Saab 340 fleet to increase service frequency across key routes.

Air T shares Rex’s commitment to keeping Australia’s regional towns connected.

16. How does Air T support its businesses beyond financing?
Air T offers a shared-services platform across finance, legal, IT, and project management to help each business grow faster and operate more efficiently.

If a local team needs help sourcing parts, developing software, or expanding operations, Air T can connect them with the right partners and expertise — without interfering in daily decisions.

Think of Air T as a resource and ally, not a parent company giving orders.

17. What can employees expect in the coming months?
The next 120 days will focus on operational alignment and information flow, not structural change.

Employees can expect:

  • Open communication between management and staff. 
  • Opportunities for growth and new roles as the fleet expands. 
  • Visits and direct engagement from Air T leadership in Australia. 

Ownership transitions take time, but Air T is committed to transparency and mutual respect throughout the process.

18. Who can employees contact with questions or concerns?
Employees should reach out to their Rex Management Committee, who maintain direct lines of communication with Air T leadership. 

Open, respectful, and candid dialogue is encouraged — it’s how we build trust and move forward together.

16 AIR T COMPANIES

4 Core Segments

Overnight Air Cargo for FedEx

The subsidiaries of this segment, Mountain Air Cargo, Inc. and CSA Air, Inc., have a history with FedEx dating back to 1980.

Combined, they have a steady operating margin and attractive cash flows.

Worldwide Aircraft Services (WASI) and Royal Aviation Services (RAS) were added to this segment in Q4 FY23 and Q1 FY26, respectively.

Commercial Aircraft, Engines & Parts

This segment provides commercial aircraft trading, leasing and surplus / aftermarket engine parts, airframes, avionics, and logistics to the aviation industry.

This segment includes Contrail Aviation Support, JetYard, AirCo and Worthington Aviation Parts.

Aviation Ground Support Equipment

This segment manufactures and provides mobile deicers and other specialized equipment products to passenger and cargo airlines, airports, the military and industrial customers.

Global Ground Support (GGS) is one of the world’s largest manufacturer of aircraft de-icing equipment.

GGS has been the sole source supplier of de-icing equipment for the U.S. Air Force since 1999.

Aviation Digital Solutions

This segment develops and provides digital aviation and other business services to customers within the aviation industry to generate recurring subscription revenues.

This segment includes WorldACD and Ambry Hill Technology.

Join Us in the Journey to Restore Rex Airlines to "Classic Rex" for All Australians.