Japan Post-owned logistics company TOLL Group is close to buying aeromedical and charter carrier Pel-Air Aviation (PFY, Sydney Kingsford Smith), according to The Australian Financial Review. Pel-Air is a sister carrier of Rex - Regional Express (ZL, Wagga Wagga), which is currently in administration and up for sale.
The newspaper said TOLL had agreed to terms and was expected to sign in the coming days. Pel-Air, which is profitable, operates a PC-24 and five Beech (twin turboprop) 300Cs on behalf of the NSW Ambulance Service, and two King Air 300Cs and five 200Cs on behalf of Ambulance Victoria, although ADS-B flight tracking data indicates not all aircraft are in service at any one time.
Pel-Air also has access to the Saab (Sweden) turboprops operated by Rex, at least while it remains a Regional Express Holdings subsidiary. It previously operated a handful of Saab 340(F)s, including on behalf of Toll Aviation (TFX, Brisbane Archerfield). However, those freighters have been disposed of, and the freight charter business has significantly diminished. Pel-Air continues to offer passenger charters on an ad hoc basis, drawing on Rex aircraft as required.
Rex administrator Ernst & Young looks set to sell off pieces of the Rex entity rather than the entire operation. The airline filed for voluntary administration in July after its venture into scheduled B737-800 operations brought it to its knees. Aside from the B737 services, the business continues to operate. To date, buyer interest has been in specific assets, such as Pel-Air, rather than the whole operation.
Last week, the same newspaper also carried an advertisement seeking expressions of interest for Rex's 2.3-hectare flying school complex at Wagga Wagga Airport. The asset includes a purpose-built flying school, 179-room accommodation quarters, a commercial-grade cafeteria, gym and in-ground pool, and a large parking lot. The site, according to the sales pitch, has "potential for additional development."
