Australia’s Regional Express (Rex) has signed letters of intent with two lessors for delivery of six Boeing 737-800s, moving the carrier a step closer to launching its first jet operations. The airline plans to take the first 737 on November 1 and the remaining five over the following four months.
Rex recently signed a term sheet with investment firm PAG Asia Capital to entirely fund its domestic jet operations. PAG Asia Capital has committed A$150 million to the venture.
Plans call for the airline to deploy three of the 737s on the airline’s Sydney-Melbourne route upon the operation’s launch on March 1. It expects the next two to enter service before Easter.
“From there, Rex will continue to grow the domestic fleet in line with the return of passenger demand and hopes to see its fleet of 737-800NGs reach 10 by year-end,” added Rex deputy chairman John Sharp. “Our preparations are progressing very well and on schedule and we hope to obtain regulatory approval by December.”
A long-time Saab 340 operator, Rex flew 60 of the turboprops to 59 destinations to all states in Australia before the onset of the Covid-19 pandemic.
Rex’s new domestic operation would pit it directly against Qantas and Virgin Australia, both of which have pared back operations due to Covid disruptions. On September 23 Rex said it called for expressions of interest from the eight communities abandoned by Virgin Australia and that talks have progressed with “several cities,” including Geraldton, Port Macquarie, and Canberra.
“These communities are concerned about their future as they face the prospect of being left with Qantas as the sole monopoly provider, especially at a time when their regional economies have been devastated by the Covid-19 pandemic, bushfires, and drought,” said Rex general manager for network strategy Warrick Lodge in a September 15 statement.