Rex to add Boeing 737-800s for domestic flights

WAGGA WAGGA - Australian regional airline Regional Express (Rex) looks beyond its Saab 340B fleet for post-Covid flying. The airline will add up to ten Boeing 737-800 to its fleet and challenge Qantas on profitable domestic routes. Rex accused Qantas of "predatory" market behaviour this week.

Rex snaps up Boeing 737-800s from Virgin Australia in new leasing arrangements. The airline posted jobs for 737 "check flight crews" on its website. According to media reports, Rex is likely to add up to ten 737-800 to operate domestic routes beyond its regional network next year.

Virgin Australia is scaling down its fleet and network in restructuring proceedings run by its new owner Bain Capital.

Rex has yet to disclose details on its new network strategy. The airline might challenge Qantas and Virgin Australia on "golden triangle" routes between Sydney, Melbourne and Brisbane by March 1s 2021 with a Sydney base.

Rex deputy chairman John Sharp announced plans for domestic flights earlier this year citing "at least 35 percent" lower operating costs than Virgin Australia.

"Anti-competitive actions"

The domestic project is said to require a 20 million AUD up-front investment. "Rex is yet to complete negotiations to secure funding," the airline said while strongly rejecting assertions made by Qantas CEO Alan Joyce that Government grants would be used to develop its 737 operation.

"Using Qantas’ own logic, Qantas is guilty of misusing Commonwealth grant money to fund predatory anti-competitive actions that are loss making," Rex said. "In effect, Qantas commenced new operations on the Sydney-Orange route for the first time on July 20th 2020, at a time when Rex’s load factoron the route was, and still is, below 30 percent."