Rex in voluntary administration, ending all 737 services

[N860CR]

If this is real and long lasting, you would have to think that this could be an introduction of the Cessna 408P as well as possibly ATR42 into service story given Mountain Air is a Cessna 408 and ATR42 operator. At least they will get their Saab 340 spares back.

The Cessna 408P passenger version might seem like the closest thing to a new-ish Metro 23 replacement but is as slow as a wet weekend and unpressurized, so actually a step backwards for people used to flying in Metro's and Saab 340s. Hopefully they will bring some ATR42s into service, if it all goes wrong they can make it the federal governments problem again anyway......

That’s the problem. These routes aren’t sustainable without the government throwing money at it. We saw this with Moree when the locals were up in arms when QantasLink got the flick for brindabella who started running metros without bathrooms. Sorry folks, it’s not our job to subsidize your lifestyle choices. If they get an unpressurized Cessna (still running at a loss), then the correct response is “thank you”

 

[Mwenenzi]

Air T REX news

Air T, Inc. Enters into Agreement with Regional Express Holdings Limited - AIR T, INC.

Air T, Inc. Enters into Agreement with Regional Express Holdings Limited

airt.com

<snip>
Rex plays an essential role in connecting regional Australian communities. Approximately 50% of Rex’s routes are not serviced by any other airline. Air T likes the Rex Saab 340 program and will be funding Rex’s engine renewal program and returning its fleet to service.

Air T will work to ensure Rex will continue to operate on a sustainable basis, thereby providing critical services to regional Australians. Air T believes it was selected to acquire the company in part because of its long-term investment horizon, experience in regional aircraft, and commitment to stabilizing and growing Rex.

The transaction remains subject to certain other approvals, including approval by Rex’s creditors and the Federal Court of Australia.
<snip>

Air T as a Saab parts dealer has a captive client. Albeit an existing client.

They will find out operating in AU is not like USA. The power and influence of the unions will something they are not used to,

 

[Saab34]

Air T doesn’t have much cash on hand looking at their numbers. They would struggle to get capital from any bank also. It appears a bit of cash is needed to get this operation moving along.

I assume this will be heavily propped up by the Government when they hand over the keys.

 

[markis10]

AIrT raised $100M earlier this year through a subsidiary, AAM 24-1, LLC. This non-recourse agreement, renegotiated with existing institutional investors took it from $30M previously. It won’t yet show on the books as it’s a progressive drawdown until 2027.

 

[eastwest101]

I don't know if we should be reading the last rites of the Saab 340 quite so soon yet, either, if these selective quotes from the Australian attributed to Air T are in context:





Of course, eventually they will be replaced. With the engine renewal plan about the GE CT7-9B turboprop engines, has the situation been sorted out globally, as I understood someone was saying there that a lot of other military helicopters shared a lot of parts, although a different version?
Also as part of the process got this:

 

[henrus]

Also as part of the process got this:

Sounds to me like all the points down the drain. Unless like Velocity they held the value of the points separately in a trust setup (highly unlikely) it seems like this was the T Rex way of getting rid of the points and removing the program?

 

[RooFlyer]

Air T Rex?

Quick, trademark that.