Another piece of Rex sold, leaving regional airline and pilot training academy to go

Rex’s flight simulator centre has been sold as administrators continue their search for a buyer for the regional airline.

Another piece of the Rex group has been sold, with lender firm Navinci Group announcing its acquisition of the airline’s Sydney simulator centre, including a valuable Boeing 737 full flight simulator.

Administrator EY has gradually been selling parts of the company that collapsed in July 2024 with over $500m of debts, following an ill-conceived expansion into jet operations.

Navinci managing director David Tozer would not reveal what was paid for the purpose-built centre and simulator, which is used to train 737 pilots.

The machines typically sell for between $12m and $20m.

Mr Tozer said in the first instance Navinci would likely lease the centre to a flight training company or airlines in need of 737 training. In the past Qantas has used the simulator for “overflow” of training its pilots unable to be accommodated in its own facilities.

Mr Tozer said Navinci was “excited about the acquisition of the simulator centre and the opportunities it presented for pilot training and development”.

Inside a 737 flight simulator similar to the one owned by Rex, now sold to Navinci.

Navinci was also expecting the delivery of a Cessna Caravan level D full flight simulator, due for delivery in early 2026 and located in Brisbane. Mr Tozer said it followed market research identifying strong demand for an independent, high-quality aircraft simulator operator servicing Australia, Oceania and Southeast Asia.

He revealed Navinci had also looked at Rex’s Wagga Wagga pilot training academy but was not interested in that, nor in any other parts of the group because of the “complexity”.

The training academy, which includes six blocks of accommodation, is on the market for $17m after pilot training operations were consolidated in Rex’s Ballarat facility.

As well as the simulator centre, Rex’s Pel-Air aeromedical business and its share in National Jet Express have been sold since the administration began.

Japanese company Toll Group paid $47.1m for Pel-Air and former Rex executive chairman Lim Kim Hai paid $12m for the 50 per cent stake in NJE.

But no buyer has emerged for the regional airline and its fleet of 56 Saab 340s, with the administration extended until June in an effort to secure a deal.

With concerns raised about the ageing aircraft – half of which are parked at airports awaiting parts and engines – the federal government has provided an ­assurance it will purchase the airline if no one else does. The government has also provided an $80m loan to EY to help with the administration and airline operation, and has bought $50m of debt from major creditor PAG Asia Capital to prevent the firm forcing Rex into liquidation.

Former Rex directors John Sharp, Lincoln Pan, Siddarth Khotkar and Mr Lim are due to face the NSW Supreme Court in April on charges of deceptive and misleading conduct, brought by the Australian Securities & Investments Commission. The charges stem from a market update delivered in February 2023, which stated Rex was on track for an operational profit for the full financial year.

ASIC claimed Rex did not have reasonable grounds to publish that guidance following a $30.4m half-year loss, and the four directors failed to correct the record for four months.

Originally published as Another piece of Rex sold, leaving regional airline and pilot training academy to go