Rex Airlines will be purchased by US-based air services company Air T Inc, with the deal to lift the debt-laden airline out of administration and be recapitalised, ending a period of uncertainty for Australian aviation.

The deal, announced late on Tuesday, will provide regional Australia with the first glimmer of stability over its air transportation options after Rex spent more than a year in limbo.

Regional Express, better known as Rex, collapsed into administration in July last year. Credit: Kate Geraghty

However, administrators E&Y warned that 4800 creditors who are owed a combined $500 million will probably receive nothing.

“No return to shareholders is anticipated,” E&Y said, in a statement, although a further update will be provided ahead of the second meetings of creditors.

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