Australia's Regional Express Holdings to launch jet services to complete against Quantas

The board of Regional Express Holdings Ltd (Rex) has announced the approval of plans to raise at least AUD 30 million (USD 20.57 million) to launch jet services to compete against Qantas Airways Ltd and Virgin Australia Holdings Ltd., the company said.

Rex, a regional airline that operates turboprops, would aim to have a fleet of five to 10 jets based in Sydney and/or Melbourne to service flights between Sydney, Brisbane and Melbourne from March 1, 2021, pending funding and regulatory approval, the airline said in a statement.

It will raise at least AUD 30 million through one or more of a sale-and-leaseback arrangement, equity injection and convertible notes, Rex said, adding that lessors were willing to provide funding covering 15 of its fleet of unencumbered Saab 340 turboprops.

Rex currently operates on less competitive regional routes like Sydney-Wagga Wagga and Adelaide to Port Lincoln using a fleet of aging Saab 340 turboprops with 30 to 36 seats.