Australian regional airline Rex approves plans for big-city operations

Regional Express Holdings said Monday its board had approved plans to raise at least A$30m to launch jet services that would compete against Qantas Airways and Virgin Australia. Rex, a regional airline that operates turboprops, would aim to have a fleet of five to 10 jets based in Sydney and/or Melbourne to service flights between Sydney, Brisbane and Melbourne from March 1, 2021, pending funding and regulatory approval, the airline said. It will raise at least A$30m through one or more of a sale-and-leaseback arrangement, equity injection and convertible notes, Rex said, adding that lessors were willing to provide funding covering 15 of its fleet of unencumbered Saab 340 turboprops. “Rex’s domestic operations will be priced at affordable levels but will also include baggage allowance, meals on board and preassigned seating,” Rex Deputy Chairman John Sharp said. “Lounge membership will be available for subscription. It is the hybrid model that Rex has so successfully pioneered over the last two decades for its regional operations.” Rex currently operates on less competitive regional routes like Sydney-Wagga Wagga and Adelaide to Port Lincoln using a fleet of ageing Saab 340 turboprops with 30 to 36 seats.<br/>