Australian company Rex Airlines accused of stealing planes from Arizona cemetery Magic Post

Australian airline Rex faces a $7.2 million lawsuit from U.S. leasing company Jet Midwest, which alleges Rex illegally dismantled and scrapped four Saab planes from a cemetery in the Arizona in 2020.

According to court documents submitted to the NSW Supreme Court, Rex initially agreed to buy the planes for $2 million, paying a $200,000 bond in 2019, but asked for more time to finalize payment due to financial hardship caused by the COVID-19 pandemic. .

Jet Midwest claims Rex failed to make further payments until June 2020, voiding the contract, but then dismantled the planes in October 2020 without authorization.

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

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

The lawsuit comes amid Rex’s difficulties, including the sale of four Saab 340Bs and its recent move into voluntary administration, affecting its domestic operations.