The Albanese government will restructure Rex Airlines’ debt, share profits and hold the airline’s fleet of planes as collateral as part of its support for US-based Air T’s bid to take over the regional airline.

About $90 million of Rex’s existing debt will be restructured on terms that allow for repayments over time through a profit-sharing arrangement. The government will also issue a new commercial loan of $60 million to the Australian airline.

These sums will supplement the $50 million that US-based Air T will bring towards a recapitalisation of the business.

“In exchange for this financing and to ensure value for taxpayer money, Air T has agreed to a range of commitments aimed at preserving essential regional aviation connectivity and improving governance arrangements,” Transport Mi

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