Rex enters non binding MoU with ATR

29 June, 2020

Regional Express (Rex) entered (29-Jun-2020) a non binding MoU with ATR for a range of commercial operations, complementing Rex's domestic operations. The project resulting from its cooperation will address the following items:

  • Sale and leaseback: Rex and ATR will work on sale and leaseback opportunities for Rex's Saab 340 in order for Rex to free the equity tied with its current fleet;
  • Fleet: ATR will support Rex in studying optimised solutions for the eventual replacement and modernisation of its current fleet by ATR 42 and ATR 72 equipment. Rex and ATR will explore the opportunity to establish a full flight simulator in Sydney, at ATR's cost, for usage by Rex crew and other third party operators;
  • Australian Airline Pilot Academy (AAPA): ATR will work with Rex and AAPA for ab-initio training solutions for ATR operators worldwide, with China and Vietnam specifically, as AAPA holds approvals from both nations;
  • Export Credit Agencies (ECA): Rex and ATR will explore optimised financing solutions for new ATR 42 and ATR 72 aircraft acquisition, such as the one offered by ATR's partner export credit agencies, BPI France and SACE. The scheme offered by the ECA might include up to 18 months grace period on the principal payment, which could provide Rex with a tool to minimise financial risk during a fleet transition period. [more - original PR]