Rex jets into mainstream

REGIONAL Express will deploy up to 10 narrow-body jet aircraft to service Australia’s “golden triangle” of east coast capital cities from 01 Mar 2021, under a plan unveiled by the carrier’s board today (TD breaking news).

The move confirms earlier tentative discussions (TD 13 May), with Rex directors now believing funding for the project is likely to be forthcoming.

“Consequently the board has authorised management to commence preparations in earnest for the operation of an initial fleet of five to 10 narrowbody jet aircraft to be based out of Sydney and/or Melbourne to service the golden triangle (Sydney-Melbourne Brisbane),” a Rex statement today said.

Rex Deputy Chairman John Sharp said leveraging on the airline’s existing infrastructure and overheads, the carrier’s cost base for the new mainstream domestic operation is estimated to be at least 35% less than Virgin Australia’s pre-COVID expenses.

The new Sydney-Melbourne-Brisbane services will be “priced at affordable levels but will also include baggage allowance, meals on board and pre-assigned seating,” Sharp said.

“Booking channels will include both Rex direct and Global Distribution Systems...lounge membership will be available for subscription; it will be a hybrid model that Rex has so successfully pioneered over the last two decades for its regional operations,” he added.

Initially the airline will seek to raise $30 million, believing that is all that is needed for the launch of limited domestic operations on the key trunk routes.

MEANWHILE a new non-binding Memorandum of Understanding with turboprop maker Avions De Transport Regional (ATR) will see joint work on sale and leaseback opportunities for the Rex Saab 340 fleet to free up equity, along with the development of “optimised solutions for the eventual replacement and modernisation of its current fleet by a fleet of state-of-the art ATR42 and ATR72 aircraft” - including the establishment of a full flight simulator in Sydney.