Australian regional airline Rex nears deal to fund big-city flights

Australian airline Regional Express Holdings (Rex) said Tuesday it was in advanced talks with Asian investment firm PAG Asia Capital for up to A$150m ($108.4m) of funding to launch jet services between major cities. The flights would compete against those offered by the country's dominant airlines, Qantas and Virgin Australia, from March 1, 2021 at a time when they are struggling financially due to the pandemic. It would be a major expansion for Rex, which currently operates on less competitive regional routes like Sydney to Wagga Wagga and Adelaide to Port Lincoln using a fleet of ageing Saab 340 turboprops with 30 to 36 seats. Rex said it had signed a long-form term sheet with PAG and planned to draw on an initial A$50m convertible note tranche by the end of this year, with the balance drawn over three years.<br/>