DELTA PARTNERS WITH TINY AUSTRALIAN AIRLINE REX

Delta and Australian regional carrier Rex are teaming up to access each other’s networks, a partnership coup for the diminutive Sydney-based carrier as it tries to establish itself as a rival to Qantas.

Rex’s passengers across Australia will be able to connect to Delta’s network in a single booking by joining the U.S. carrier’s Sydney-Los Angeles services, Rex Deputy Chairman John Sharp said in an interview. Delta’s flights to Sydney can connect to more than 60 Rex routes in Australia.

Rex customers will also be eligible for preferential rates with Delta, Sharp said.

Rex plans to soon introduce a loyalty program that will link with the U.S. carrier’s one.

Ultimately, Rex’s frequent fliers should be able to access Delta’s U.S. lounges and use air miles to buy Delta flights, he said.

The unlikely partnership brings together one of the world’s biggest airlines with one of the smallest.

Regional Express Holdings, as Rex is formally known, has a market value of just $97 million.

A tie-up with Delta, which is worth $28 billion, gives branding muscle to Rex’s new strategy of flying busy Australian routes dominated by Qantas.

The agreement means Rex will soon have access to an overseas network, lounges in Australia’s biggest airports and its own loyalty program, Sharp said. “By the time you cover those things, you offer our domestic customers the full suite of services they’re looking for,” he said.

Services between Delta and Rex are due to start in the third quarter this year. Virgin Australia ended its more than 10year partnership with Delta in December, opting for United Airlines instead.