Parkes Shire Mayor Neil Westcott has thanked the Australian Government for keeping Rex in the air during its transition from voluntary administration to finding a bidder.

The airline service which operates out of Parkes, among many other regional locations, fell into voluntary administration in mid-2024 after receiving substantial Commonwealth funding during and after Covid and expanded beyond its means.

US-based Air T will become the new owner of Regional Express Holdings (Rex) after creditors voted in favour of a deed of company arrangement on Tuesday afternoon to keep the regional airline flying.

There had been previous attempts to sell the airline and by June this year Rex's appointed joint administrators EY-Parthenon had received a number of offers from interested parties.

They entered into a sale and implementation deed with Air T on 21 October.

It's a significant step forward, one valued by Parkes residents who at one point feared they would lose the service they came to rely on to access the city and beyond for business, leisure and holiday travel, and medical treatment.

"The air route to Sydney provided by Rex Airlines is a vital service for the Shire of Parkes and the adjoining shires," Cr Westcott said.

"While we await full details of the new owners and their future priorities, we strongly point out to the federal government the importance of these links in growing stronger regions and thank them for keeping Rex in the air during this time of transition."

It's expected Air T will take ownership and operational control before mid-December, according to administrators.

Dubbo Regional Council and its mayor Josh Black also welcomed the news.

As well as a new federal government funding program to support regional and remote airports impacted by Rex’s voluntary administration.

Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King said the program, capped at $5 million, will mitigate financial barriers to these organisations continuing to provide essential services to their communities.

"Eligibility will be based on the amount owed to the organisation by the Rex regional business when it entered voluntary administration," Ms King said.

This program is a separate Australian Government initiative and was not part of the negotiations with Air T for its acquisition of Rex.

The government has endorsed Air T’s bid for Rex and will provide a support package comprising a loan of up to $60 million and a restructuring of existing Australian Government debt.

Rex services 54 airports across Australia.