Rex Invests in Pel-Air
Tuesday, 30 August 2005

Regional Express (Rex), Australia’s largest independent regional airline and Pel-Air Aviation Pty Limited, one of Australia’s largest regional freight and charter operators, today announced an agreement for Rex to invest in Pel-Air. Rex’s investment will involve a 50 percent stake in Pel–Air.

Announcing the move, Rex Managing Director, Geoff Breust, said that after examining a range of potential expansion and aviation investment possibilities, Rex believed there were substantial benefits and synergies in coming to an arrangement with the specialist cargo and charter service provider.

Pel-Air operates a fleet of eleven turbo – prop and twelve jet aircraft in cargo, special mission and passenger charter services throughout Australia and overseas. Its regular cargo services extend from northern Queensland through to Melbourne and Adelaide as well as between Darwin and Melbourne via Alice Springs. It provides specialist medivac operations in conjunction with Careflight International.and also provides special strike and target towing activities under contract to the Australian Defence Force.

“Our investment in Pel-Air is designed to provide strategic benefits in terms of market diversity and growth, synergies to reduce cost and provide broader coverage. There are potential cost savings in aircraft utilisation, maintenance and the sharing of facilities and resources. Pel-Air will continue as an entity in its own right,” Mr Breust said.

Mr Russell Hodge, a director of Pel-Air, who will be appointed to the Rex Board, said that the arrangement with Rex would bring great benefits for both Companies.

“Pel-Air is a well respected and successful operator in the two tonne segment of the air freight market and provides quality charter services for a variety of customers. Our activities complement those of Rex’s regional airline services making the arrangement an excellent fit. The investment by Rex will be positive for Pel-Air’s customers and staff,” Mr Hodge said.

The agreement between the Companies is subject to certain conditions being met including the successful listing of Rex later this year.