Jet Midwest has initiated legal action against Regional Express (Rex) in the New South Wales Supreme Court, alleging the airline stripped aircraft for parts and sold the remaining airframes for scrap without payment.
The case, titled Jet Midwest, Inc. v Regional Express Holdings Limited, was presented during a directions hearing before Justice James Stevenson on September 13.
Jet Midwest claims it sold Rex four Saab turboprop aircraft in 2019 for $2m, with Rex paying only a $200,000 deposit, and later declared the contract void after Rex requested extensions due to financial issues related to COVID-19.
The lawsuit seeks $7.2m plus legal costs, as Jet Midwest alleges Rex removed engines and sold airframes for scrap, while Rex is currently in administration and seeking a new majority owner.
