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Regional Express (ASX: REX) rings in NSW Ambulance contract
  • Regional Express (REX) is ready to take on Qantas and Virgin as it plans on creating a new domestic operation
  • The Board has approved the company's raise of $30 million for the start-up
  • The airline has been speaking to potential parties to help fund the big move and has seen strong interest
  • Domestic operations will be priced at affordable prices but it will also include baggage allowance, meals on board and pre-assigned seating
  • On market close, Rex is up 17.02 per cent and is selling shares for $1.10 each

Regional Express (REX) is ready to take on Qantas and Virgin as it plans on creating a new domestic operation.

The company currently has its foot in the door in the regional game but now wants to go to the big capital cities.

The airline has been speaking to potential parties to help fund the big move and has seen strong interest. The Board has now said that Rex can successfully embark on domestic operations.

Rex will now raise a minimum of $30 million, which is what the Board believes is all that will be needed for the domestic start-up.

The company will reconvene within the next three weeks to discuss what the structure of the fund raising will look like and the maximum amount that will be raised.

“Rex has the biggest regional network in Australia and we are the only carrier in Australia that has been able to successfully navigate the turmoil and shocks over the last two decades with uninterrupted operational profits since 2003," Deputy Chairman John Sharp said.

"With Rex’s expansive regional network of 60 destinations, existing infrastructure in all these capital city airports, superior efficiencies and unbeatable reliability, it will simply be an incremental extension for Rex to embark on domestic operations especially since one out of every ten flights in Australia was already a Rex flight during the pre-COVID days," he added.

Rex is aiming to have a fleet of five to 10 jets based in Sydney and Melbourne and will fly between Sydney, Brisbane and Melbourne from March 1 2021.

Domestic operations will be priced at affordable prices and will include baggage allowance, meals on board and pre-assigned seating.

On market close, Rex is up 17.02 per cent and is selling shares for $1.10 each.


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