Australia's Rex Airlines accused of stealing planes from Arizona boneyard

Rex agreed to purchase planes for $US2 million, paying a $200,000 deposit but failed to make further payments in 2020

Australian airline Rex is facing a $US7.2 million lawsuit from US leasing firm Jet Midwest, which alleges Rex unlawfully dismantled and scrapped four Saab aircraft from an Arizona boneyard in 2020.

According to court documents submitted to the NSW Supreme Court, Rex had initially agreed to purchase the planes for $US2 million, paying a $200,000 deposit in 2019, but requested more time to complete the payment due to financial difficulties caused by the COVID-19 pandemic.

Jet Midwest claims that Rex failed to make further payments by June 2020, voiding the contract, but later dismantled the planes in October 2020 without permission.

The lawsuit alleges Rex instructed a third party to remove parts, including engines and propellers, and scrapped the airframes, profiting from the sale of components.

The case is set to be heard on Friday in the NSW Supreme Court.

The lawsuit emerges amidst Rex's struggles, including the sale of four Saab 340Bs and its recent move into voluntary administration, affecting its domestic operations