Rex to expand fleet to grow its markets
April 4, 2006 - 9:14AM
Airline group Regional Express Holdings Ltd (Rex) will expand its fleet by five aircraft to 34 this year as it increases capacity to grow its operations.
Rex said it will purchase four Saab model aircraft and one Beech 1900D, so it can better meet passenger requirements in the months ahead.
Managing director Geoff Bruest said the new aircraft will be used to phase out its 19-seat Metro 23 aircraft from passenger operations, while also helping the company grow.
"The approach is a two-pronged attack," Mr Bruest said.
"Firstly, to build the market by replacing all of our Metro aircraft so we end up operating just one type of aircraft, which is the 34-seat Saab," he said.
"From a customer point of view, the Metro is not considered as acceptable as the Saab, so we see the new fleet as a way of providing the highest level of service that we can."
Mr Bruest said the Metros will be used for freight and charter work or sold off.
The fleet changes will also give the airline room to grow.
"We've had particularly strong growth in New South Wales and South Australia and we see that continuing," Mr Bruest said.
"This will give us the ability to react to our developing markets by providing additional capacity and frequency and growing our revenue.
The Saab and Beech aircraft purchases will be funded from internal resources.
During the half-year, Rex took full ownership of Dubbo-based regional airline Air Link for $3 million, and bought a 50 per cent stake in freight and passenger charter company Pel-Air for $12 million.
The stock exchange listed company said it was on target to buy the rest of Pel-Air in two stages and achieve full ownership in two years.
Rex, which was formed from the amalgamation of Hazelton and Kendell Airlines in 2002,
The airline made a 2005/06 first half net of $9.3 million, up from $2.7 million in the same period the previous year.
Its shares rose 2.5 cents to $1.075.
© 2006 AAP