Rex expands into FIFO

REGIONAL Express will significantly expand its presence in the fly-in/fly-out (FIFO) and freight sectors with the $48 million acquisition of Cobham Aviation offshoot National Jet Express (NJE) (TD breaking news).

The purchase price is being split 50/50 between Rex and its joint venture partners - one of whom is the carrier’s Executive Chairman Lim Kim Hai.

The move was foreshadowed earlier this week (TD 12 Jul), with an ASX release today stating the deal positions Rex to participate in the “booming” FIFO sector.

“With this acquisition Rex will have a FIFO arm that is simply unparalleled in Australia.

“NJE has a completely modern fleet comprising eight Bombardier Q400 turboprops and six Embraer E190 jets for FIFO work,” Lim enthused.

“Both aircraft types are fuel efficient, have enhanced operational reliability and low carbon emissions when compared with the predominantly 40-yearold Fokker 100s used by the other major FIFO operators,” he said.

The environmental credentials of NJE look set to play a key role in the deal, with Lim saying the operation “will naturally be the partner of choice for resource companies all over Australia who have been crying out for so long for a FIFO provider that is able to address their triple priorities of minimal impact on the environment, comfort and safety of staff and reliability of service.”

Further expansion of the business is also foreshadowed, with Rex saying the charter company would “invest in modern aircraft and technology to enable NJE to expand from its traditional bases of WA and SA and bring our unique brand of FIFO services to Queensland and the Northern Territory”.