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Rex is planning to sell the property used by its flight training school for up to $17 million, according to reports.
The ABC cited a local real estate agent who said the main 179-room facility used by the Australian Airline Pilot Academy in Wagga Wagga, NSW, had attracted more than 40 enquiries.
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Rex entered administration in July, halting its 737 capital city services but maintaining its regional connections serviced by its smaller aircraft.
Administrator EY has seemingly yet to find a buyer, with a source claiming late last month that no obvious candidates have emerged.
However, talks appear to be progressing to sell its highly rated flight school after it confirmed Toll Aviation would purchase Rex’s aeromedical arm Pel-Air, including its valuable fixed-wing air ambulance contracts, in a $47.1 million deal.
Geoff Palmer, a local real estate agent, said the facility in NSW had an expected market value of $17 million.
“We have fielded over 40 enquiries for the property at this stage,” Palmer said. “It’s city-based investment funds. There are regionally based family funds. Obviously, there’s good interest from the aviation industry as well.
“There are some offshore interested parties, too.”
Former transport minister Michael McCormack, current MP for Riverina, said a closure would be “devastating” for the community.
“I have had discussions with Federal Transport Minister Catherine King recently about the AAPA and the importance for it to continue operating,” McCormack said.
“I have also raised concerns about Rex as high as the Prime Minister.”
AAPA trains pilots to commercial airline standards and says it has been approved by civil aviation regulatory bodies in China, Singapore, Australia, Vietnam and the United Arab Emirates.
It has two large campuses at Wagga Wagga, NSW and Ballarat, VIC, and has a total combined capacity of over 400 cadets a year for its residential commercial pilot’s licence (CPL) programme.
Already, AAPA has trained pilots for international airlines such as Qatar, China Airlines and Air Arabia, alongside providing pilots for its parent company Rex.
Last month, Toll, owned by Japan Post, bought Pel-Air in a deal that will include its entire fleet consisting of eight Beechcraft King Air B200/300 series turboprops and two Pilatus PC-24 jets.
“This acquisition not only enhances our capabilities, but it also ensures that we can provide an effective response to any aeromedical situation, utilising the right asset for the right job. Our focus on operational excellence will directly benefit patients, communities, and stakeholders,” said Colin Gunn, general manager of Toll Aviation.
“The integration of Pel-Air into Toll Aviation will create synergies that will improve operational efficiency and enhance service delivery. Our clients will benefit from a more extensive oversight and operational support to ensure the communities of NSW, ACT and Victoria have access to critical patient care.”
Though Rex remains in administration, Pel-Air, a profitable business with contracts for air ambulance services in Victoria and NSW, is outside the administration and continues to operate normally, as does Rex’s FIFO and charter subsidiary National Jet Express.
