Oct 21 (Reuters) - U.S. aviation services provider Air T ( AIRT ) on Tuesday said it has

signed a deal with the voluntary administrators of Regional Express Holdings to acquire the

collapsed Australian regional airline Rex, in a transaction backed by the Australian government.

The acquisition, which is subject to regulatory approvals, would see Air T ( AIRT ) 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 ( AIRT ) said.

Air T ( AIRT ), which provides air delivery services for companies like FedEx ( FDX ), said it will

take over Rex's operations, providing lifeline air routes for regional communities.

Rex, which focused on serving Australia's vast rural areas with smaller aircraft, entered

voluntary administration last year and was removed from the Australian Securities Exchange in

September, more than seven months after its administrators launched a sale process.

The Australian government had indicated in February it could buy the airline if no private

offer emerged.

Australian Transport Minister Catherine King said the deal is a step toward bringing Rex

out of administration and maintaining "critical aviation links for regional communities."