Rex airlines has been acquired by United States aviation holding company Air T after 15 months of uncertainty.

The American air services provider will pick up Regional Express Holdings and its pilot training school at Ballarat, Victoria.

The acquisition, backed by the Australian government, is subject to regulatory approvals seeing Air T take control of Rex, a regional carrier that has struggled to compete with larger rivals Qantas and Virgin Australia.

The deal includes a restructuring of Rex's financing arrangements with the Australian government and is expected to close by the end of the year, Air T said.

Air T, which provides air delivery services for companies like FedEx, said it will take over Rex's operations, providing lifeline air routes for regional communities.

Rex, which f

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