Australia’s Regional Express (Rex) will sell its Pel-Air ambulance business to logistics company Toll Holdings.
Rex will sell the business for A$47 million ($31 million), according to administrator Ernst & Young.
The transaction is subject to regulatory approval.
“Today the administrators for Rex Airlines have advised the sale of Pel-Air, part of the Rex business, to Helicorp Pty Ltd, part of Toll Aviation,” says Catherine King, Minister for Infrastructure, Transport, Regional Development and Local Government.
“Pel-Air is the contractor supplying ambulance services to Ambulance Victoria and NSW Ambulance, along with specially modified aircraft for international and domestic aeromedical transfers. This is part of the ongoing administration process and proceeds from the sale will be used by the Rex Group to repay secured debt.”
Given Rex’s crucial role in providing connectivity to remote Australian communities, Canberra took a keen interest when it entered voluntary administration in on 31 July and suspended Boeing 737 operations.
The carrier entered administration following an ill-starred foray into Australia’s domestic market, in which it used Boeing 737s to compete head-to-head with the country’s major carriers on competitive trunk routes.
Clearly concerned about the potential impact of Rex’s travails on niche regional routes, Canberra has guaranteed the regional operations of Rex, which are operated with Saab 340Bs.
