Managers of Australia's Regional Express (REX) are seeking an extension of carriers' voluntary administrative period to see some “stakeholders” in the sales process.
Rex appointed manager Ernst & Young (EY), said he is working to narrow the number of bidders and “working to negotiate to achieve a successful transaction.”
EY did not disclose the number of offers received except that it said “it's abundantly funded and has real value in the business and its future.”
Managers were originally given until the end of June to end the sale of Rex, which took part in management in July 2024, amid increasing financial challenges following the expansion into Operation Jet.
EY then applied to Australian federal court to seek an extension until December, citing the need to “complete negotiations with this narrow bidding field.”
He said he will promote “detailed bidder engagement with business stakeholders” and will work closely with candidates to complete and document the transaction.
If the court grants the extension, the Australian government has pledged to continue financial support for carriers and extend ticket guarantees for Rex passengers.
Transport Minister Katherine King has pledged additional government funds up to $30 million ($19.3 million) to “keep local routes in the air” until the end of the sales process.
It is on top of a $80 million loan from Canberra and will keep the route up until the end of June. King points out that the amount has not been fully spent yet.
Canberra had previously been willing to acquire a Rex if the sales process did not bring the right buyers. This followed the first failed sales process in 2024.
