Rising In The West

Regulated RPT routes

Rex services in Western Australia became a real possibility when the airline answered the state government’s call for tenders for the regulated air routes of Perth to Albany and Perth to Esperance. These routes are deemed uneconomic to operate commercially, without the protection of a regulated monopoly.

For many years Fokker 50 aircraft operated by Skywest and most recently Virgin Australia Regional Airlines had flown these routes.

With Skywest’s 2013 absorption into Virgin Australia, Virgin maintained Fokker 50 services to south-west WA. But with Virgin’s focus shifting in 2015 to fleet rationalisation, it seemed the Fokker 50’s days were numbered. In September last year, Virgin signalled it would not continue to bid for the services and would move to retire its Fokker 50 fleet in February 2016.

Locally, the news of Virgin’s withdrawal from Albany and Esperance was initially met with great concern. With the drive to Perth being well over five hours, local business owners, holidaymakers and government officials relied heavily on the turboprop services to connect with the capital city, as well as access the greater international and domestic airline network operating out of Perth Airport.

However, on November 13 2015 the Western Australian state government announced the selection of Regional Express as the preferred airline for both services. A deed of agreement secured Rex for five years commencing on February 28 2016, and in the space of just a few months, the Saab 340B has become a familiar sight in West Australian skies.

Heading West

Albany and Esperance may seem a long way from the rest of Rex’s network, which, until February, only went as far west as Ceduna in South Australia. But Rex is no stranger to expansion, having grown its network extensively throughout Queensland in recent years.

Rex’s fleet of 34-seat Saab 340B aircraft, coupled with its experience in operating to remote and regional areas, meant WA was a natural next step for the airline.

Warrick Lodge is Rex’s general manager network strategy and sales. He is upbeat about Rex’s current presence and future in Western Australia.

“WA is a vast state involving big distances and this is perfect for regional aviation. With both Virgin Australia Regional Airlines and QantasLink focusing on larger turboprop aircraft, there is a vacuum in the 30-seat regional aviation market,” Lodge told Australian Aviation recently.

Rex’s schedule allows for 46 weekly services between Perth and Albany, and 36 flights per week between Perth and Esperance, equating to around 4,250 flights a year. This will allow the carrier to meet the existing demand of close to 110,000 passenger movements annually.

A small and efficient team of 50 people based in Western Australia run the Rex service.

“Rex has employed 42 staff members to manage the Perth base and this number is a mix of flight crew, engineers, airport and ground handlers,” Lodge says. “Both Albany and Esperance employ four people each, and of the total headcount of 50, there are six staff that were formerly employed by Virgin Australia Regional Airlines. ” In order to meet the timeframe, the airline had to establish a “greenfield” presence in Western Australia in a remarkably short period of time. The sheer number of tasks required to ensure the airline was ready for its February start date is staggering.

Lodge explains: “Rex only had three months to prepare for the start-up. In this time, we had to import three aircraft and get them ready for deployment, establish a new Perth flight crew and engineering base, negotiate ground handling contracts at all three airports, ensure all the ground support equipment and spares were in place and obtain CASA sign off on the three new ports on our air operator’s certificate. ” To facilitate the operation, Rex deployed two full shipping containers of equipment from New South Wales to Western Australia ahead of the commencement of services. The airline also transported equipment and provisions aboard the three aircraft that it transferred to the state, ensuring as much operational material was available as quickly as possible to support the new service.

Remarkably, Rex had faced tighter deadlines while expanding in Queensland. As such, the airline was well versed with start-up operations, allowing services to commence on time, just one day after Virgin Australia’s final flight on the routes.

Rex in WA

While in essence Rex has replaced Virgin Australia Regional Airlines on the regulated RPT routes, the airline has made some important tweaks to the service it feels will better serve customers in Albany and Esperance.

The first change is the move from Virgin’s 48-seat Fokker fleet to Rex’s 34-seat Saab 340B aircraft. Although Rex operates Saabs to 58 destinations across Australia, it is a new experience for many West Australian travellers. The aircraft is noticeably smaller than the Fokker 50, but its size has allowed Rex to increase the flight frequency on the routes as well as grow capacity.

“The schedules have also been reversed,” explains Lodge. “Rex’s aircraft overnight in the regional ports to facilitate early morning departures from the regional ports and evening departures from Perth. This allows for same-day return travel to Perth, whilst still enabling same-day return travel to both Albany and Esperance. ” Furthermore, Rex has adjusted the pricing schedule by entering into unique partnerships with the City of Albany and the Shire of Esperance. This partnership sees the best fares on each route reduced by $20, with the airline selling the community-friendly fares as both advanced purchase and last minute deals.

The flight experience has also changed, introducing a quintessentially regional feel to flights between the three West Australian cities. “Passengers are welcomed at the foot of the aircraft steps by one of Rex’s operating pilots and Rex prides itself on old fashioned country hospitality. In-flight, Rex offers a complimentary sweet or savoury snack and tea and coffee, and a bar service is available after 11 o’clock. ” In Perth, Rex does not currently operate an airline lounge or have a lounge agreement with Qantas or Virgin Australia. Thus, regulars on the route used to accessing the Virgin Australia lounge now find themselves in the main concourse of Perth’s Terminal 2. However, the airline does offer lounges in Sydney, Melbourne and Adelaide, and is closely monitoring Perth activity to gauge the viability of a Rex airport lounge in the future.

A baggage interline agreement between Rex and Virgin Australia means for regional passengers, there is no inconvenient baggage reclaim and recheck when transiting Perth, or travelling from anywhere on the Virgin Australia domestic network to Albany or Esperance.

What’s next for Rex?

As Rex services in Western Australia approach the half-year mark, the airline is optimistic about its impact and future in the state.

“Overall we have had positive feedback from customers. Rex has operated with very strong on-time performance that has exceeded 90 per cent during the first three months of operations from March to May inclusive. There have not been any cancellations during that period. ” The expansion into Western Australia has allowed Rex to improve its operating efficiencies. Despite being geographically distant from the rest of the airline’s network, the synergies are broader in that Albany and Esperance are true regional air routes that Rex is uniquely positioned to manage.

“They are bread and butter regional routes for Rex due to regional air services being our core business. In addition, it well positions Rex to take on other WA opportunities as they arise. ” For Rex, the future in WA is bright. The airline feels there will always be a place for 30-seat class aircraft, which can better handle demand fluctuations, especially during economic downturns.

And with the airline now having established a base in Western Australia, it means taking advantage of future opportunities in the vast state is easier.

“Just take a look at Rex’s network in Queensland and you will see our potential in WA,” says Lodge. “The latter, like Queensland, is a very large state with many thin routes. Rex is probably the only operator left that could sustain a viable air service in such a harsh environment. ”

They are bread and butter regional routes for Rex. WARRICK LODGE