In a startling revelation that has sent shockwaves through Australia's aviation industry, regional carrier Rex Airlines has been exposed as being ultimately controlled by an American company, despite its quintessentially Australian branding and operations.
The American Connection
Corporate documents filed with the Australian Securities and Investments Commission (ASIC) reveal that Rex's ultimate parent company is Delaware-registered PAGAC III, part of the massive US-based private equity firm PAG. This disclosure comes after Rex's Singaporean parent company, PAG Air, was placed into liquidation earlier this year.
The ownership structure shows:
- PAGAC III (USA) controls PAG Air (Singapore)
- PAG Air controls National Jet Express (Australia)
- National Jet Express controls Rex Airlines
What This Means for Australian Aviation
This revelation raises significant questions about foreign control of Australia's critical regional air network. Rex operates as a vital lifeline for countless regional communities across the country, servicing over 60 destinations with its fleet of Saab 340 and Boeing 737 aircraft.
Aviation analyst Michael Kaine commented: "This discovery fundamentally changes how we view Rex's position in the Australian market. The airline has positioned itself as an Australian challenger to Qantas and Virgin, yet ultimate control rests overseas."
Regulatory Implications
The ownership situation may have implications for aviation regulations and foreign investment rules. While foreign ownership of Australian airlines is permitted under certain conditions, the extent of American control through multiple corporate layers presents a complex regulatory picture.
Key questions emerging include:
- How does this affect Rex's eligibility for government support and route subsidies?
- What are the implications for national security and aviation sovereignty?
- How transparent has the airline been about its ultimate ownership structure?
Industry Reaction
The Australian aviation community has expressed surprise at the discovery, with many industry insiders having assumed Rex was predominantly Australian-owned. The airline has built its brand around reliability and service to regional Australia, making the American ownership revelation particularly striking.
As one industry veteran noted: "This shows how globalised the aviation industry has become, but also highlights the importance of transparency about who ultimately controls our critical infrastructure."
The discovery comes at a challenging time for regional aviation, with many communities increasingly dependent on reliable air services for medical travel, business connectivity, and family connections.
