Total
0
Shares
Regional Express (ASX:REX) - Deputy Chairman, John Sharp
Deputy Chairman, John Sharp
Source: Queensland Times
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Regional Express (REX) signs a letter of intent to add two new Boeing 737-800NG aircraft to its fleet
  • The aircraft are expected to arrive in August and take the airline’s fleet of 737s to a total of eight
  • With the added aircraft, Rex will be able to launch new routes to capital cities, as well as large regional centres and popular leisure destinations
  • The airline now hopes to add another two 737s to its fleet before the end of this year, taking the total to 10
  • Shares in Regional Express remain steady at $1.20 each as of 3:50 pm AEST

As part of its domestic expansion plans, Regional Express (REX) has signed a letter of intent to add two new Boeing 737-800NG aircrafts to its fleet.

The airline currently runs 737 services from Melbourne to Sydney, the Gold Coast, Adelaide and Canberra, and from Sydney to the Gold Coast.

The two aircraft will take Rex’s fleet of 737s to a total of eight and are scheduled to arrive in August, with flights to begin in September. Rex said the new planes will allow the airline to launch new routes to other capital cities, as well as large regional centres and popular leisure destinations.

As Australia’s largest regional airline, Rex had previously avoided going toe-to-toe with the likes of Qantas, Jetstar and Virgin. However, the company secured Board approval in June last year for a venture into more mainstream operations.

Then, in November, Rex secured $150 million in funding through an agreement with Hong Kong-based investment firm PAG Regulus Holdings to support its expansion plans.

“Within six months we have already obtained approval for the jet operations on our Air Operator’s Certificate (AOC), recruited and trained crews and engineers, procured six aircraft and started operations on five domestic routes, with the first services commencing on 1 March 2021,” Deputy Chairman John Sharp said.

Rex is now aiming to add another two 737s to its fleet before the end of the year, for a total of 10, and is seeking expressions of interest from lessors for the two aircraft as well as from cities that are, according to Mr Sharp, “keen to finally put an end to the¬†price gouging they have been subject to for too long”.

Shares in Regional Express remain steady at $1.20 each as of 3:50 pm AEST.

REX by the numbers
More From The Market Herald

" Vmoto’s (ASX:VMT) profit takes off in HY report

Vmoto’s (VMT) profit has taken off in the last six months, increasing 119 per cent to total $4 million at the end of

" Air New Zealand (ASX:AIZ) defers capital raise to 2022

Air New Zealand (AIZ) will defer its capital raise plans until 2022, as COVID-19 continues to hamper the tourism sector.

" Regional Express (ASX:REX) flags bigger loss due to lockdowns

Regional Express (REX) is expecting an even bigger loss due to the current lockdowns in the east coast.
EROAD (ASX:ERD) - Chair Graham Stuart

" EROAD (ASX:ERD) raises $19m in oversubscribed share purchase plan

EROAD (ERD) has closed its NZ$16.1 million (A$15.3 million) share purchase plan (SPP) following strong shareholder support, with applications totalling almost NZ$43 millio…