Lucas Baird Reporter
Dec 2, 2020 – 8.23am
Regional Express will expand its fleet to five Boeing 737 planes by Easter next year as it looks to launch inter-state services into Brisbane and take on Qantas and Virgin on the lucrative "golden triangle" routes.
It marks the first time the traditionally rural-focused carrier has outlined its plans beyond the initial Melbourne-Sydney service it will launch in March.
Tickets went on sale on Wednesday. Prices start at $79 for economy seats but stretch to $299 for the eight business class seats on each flight.
This cost is cheaper than a Virgin flight at a similar time and positions Rex's fares more in line with Qantas' budget offshoot Jetstar. Virgin
has embarked on a new mid-market strategy post-administration.
"We will be offering premium full service with our trademark country hospitality but at fares pegged at the budget carrier level," Rex deputy chairman John Sharp said.
Mr Sharp said all fares would include checked baggage allowance, pre-assigned seating and food.
Business-class passengers will get automatic access to lounges in Sydney, Melbourne, Adelaide and in-flight wi-fi. Economy passengers can gain entry into the lounges through a $33 two-hour pass or $329 annual membership.
Rex,
which was in a dire state at the start of the pandemic before it received $62 million of government aid last financial year, signed a deal with Asian investment giant PAG for $150 million to fund the expansion.
The terms of the agreement could see PAG eventually own half of Rex, assuming there are no drastic changes to the company's capital structure.
Rex said it will eventually build its inter-state fleet to include up to 10 737s after it acquired its first – an ex-Virgin aircraft – in early November.
"The first three Rex Boeing 737-800s will take off between Sydney and Melbourne on 1 March 2021. Rex will begin with 9 Sydney-Melbourne return services a day," Mr Sharp said.
"By Easter, two additional 737s will be added to expand our domestic network to Brisbane and other capital cities."
"If all things go as planned, we hope to grow our fleet to 8-10 by the end of 2021," he said.