The rise and fall of Rex

Deputy chairman John Sharp suggests that Australia “may as well” have a three-airline market, noting that the new and improved Rex is likely to sit “halfway between a full-service airline and a low-cost airline”. The expansion will be funded by a $200 million capital investment, with the regional airline already in discussions with “half a dozen private equity and investment companies”.

August 13, 2020
Rex swoops for ex-Virgin 737s to fly Sydney–Melbourne–Brisbane

Rex makes moves to secure up to 10 Boeing 737s off the back of Virgin Australia’s restructuring, including the dismantling of its budget arm, Tigerair. Sources tell The Australian Financial Review that the airline is in the process of cutting a deal with aircraft lessors over a number of 737s that were due to be leased to Virgin Australia, before its entrance into voluntary administration earlier in 2020. Meanwhile, Virgin executives and incoming principal investor, Bain Capital, are in the process of reducing costs by operating at a smaller capacity, cutting Tigerair, and simplifying the airline’s fleet exclusively to 737s.

 November 19, 2020
Rex confirms $150m investment to fly capital cities

Rex finally signs off on a $150 million investment that will allow it to launch flights between Sydney, Melbourne and Brisbane from March 2021. The airline draws down an initial $50 million in January from PAG Asia Capital and the deal will see the APAC organisation nominate two directors to sit on the board.

December 4, 2020
Rex’s ‘limited network’ no threat to Qantas, says Joyce

Qantas chief executive Alan Joyce brushes aside Rex’s threat to his business’ market share, arguing the regional airline will be hamstrung by its “limited network” and higher ticket prices. Responding to a question from Australian Aviation, Joyce says, “We’re very confident in our relative position and what that means for our market share, which should be above 70 per cent going forward.”

December 16, 2020
Rex gets CASA nod to fly 737s on Golden Triangle

Rex passes the final regulatory hurdle in its bid to operate capital city routes after CASA clears the airline to fly its new fleet of 737s. The airline also confirms it will be offering work to employees made redundant by its rivals.

The business also reveals it has now acquired a High Capacity Air Operator’s Certificate, which allows it to fly aircraft with more than 38 seats or weighing more than 4,200 kilograms.

January 19, 2021
Qantas is worried about us flying capital city routes, says Rex

Sharp says Qantas is secretly “distressed” at his airline’s plans to fly capital city routes despite publicly belittling its chances. In a bullish newspaper column, Sharp appears to compare the national carrier to the Titanic and says the real reason for chief executive Alan Joyce’s strong comments is to make customers think Rex and Virgin could collapse.

January 26, 2021
Rex’s 737 Sydney flyover on Australia Day

Rex performs an Australia Day flyover of Sydney Harbour using one of its new 737s. The 737-8FE, VH-RQC msn 33797, takes off from Sydney Airport at 9:59am as flight ZL1962 and flies around the capital city for 45 minutes.

It flies at just 1,500 feet over the Harbour Bridge as well as taking in the Opera House, beaches, and spots all over the city. The aircraft is the same VH-RQC that was first delivered sporting its new branding on Christmas Eve.

March 1, 2021
First Rex service lands in Sydney as battle for Golden Triangle begins

Rex fires the starting gun on the new battle for the golden triangle as it operates its first service between the NSW and Victorian capitals. The Boeing 737-8FE, VH-RQC msn 33797, departs Melbourne at 7:21am as flight ZL18 and arrives in Sydney at 8:25am.

Tickets for early Rex flights between Sydney and Melbourne had gone on sale from just $49, with economy including checked baggage, food and pre-assigned seating – indicating Rex will pursue a ‘mid-market’ hybrid strategy.

April 21, 2021
Sharp says ‘desperate’ Qantas is ‘technically insolvent’

John Sharp launches a withering attack on Qantas’ finances, branding the airline “technically insolvent”. Sharp also suggests in the newspaper column that chief executive Alan Joyce is a hypocrite for going “cap in hand” to the federal government for help. “Qantas is now so desperate that it is willing to risk universal ridicule just to get its hands on more cash at any cost,” he writes.

April 23, 2021
Joyce says ‘propellers literally falling off’ Rex aircraft in withering column

Qantas chief executive Alan Joyce pens a withering newspaper column about rival Rex, mocking its “empty aircraft” that are so old the “propellers are literally falling off”. “It’s a well-known fact in the industry that Rex has now chalked up another dubious honour,” writes Joyce. “It has presided over the worst launch of a new jet airline in Australia’s aviation history, with empty aircraft and announced routes that have never been flown.” He mocks the airline’s “lonely customers”, accuses John Sharp of making “baseless criticisms” on purpose because it was a “key part of its strategy”, and suggests Rex has “failed to invest” in its fleet.

June 2, 2021
Rex prints Qantas refund complaints in newspaper ads

The row between Rex and Qantas over network expansion hits a new low when the regional airline unveils a print advert showcasing Qantas customer complaints about COVID-19 refunds. The advert features 45 apparent examples of passenger anger at the flag carrier being slow to process refunds. Examples include quotes claiming Qantas “can’t be trusted” and are “horrible to deal with”, as well as an anecdote stating someone waited on hold for five-and-a-half hours.

December 8, 2021
Capacity wars return as Rex aims to grow 737 fleet from 6 to 14

Australian aviation’s capacity wars appear to be back on after Rex says it will aim to significantly expand its 737 fleet from six to 14 to support its growing domestic operations. The news comes as new rival Bonza announces plans to expand its fleet from two to eight in its first year, and Virgin similarly says it would grow its collection of 737s from 56 to 84. “Next year we intend to go to all capital cities around Australia and indeed to include our growth to some of the larger regional centres, particularly on the east coast of Australia,” says Sharp. He adds Rex’s rapid expansion was made possible because COVID-19 caused “thousands” of aircraft to hit the market at low prices, with lessors “happy to accept any price”.

December 20, 2021
Rex completes first Sydney–Brisbane flight

Rex’s first Sydney to Brisbane flight takes off, completing the airline’s long-awaited goal of servicing the lucrative “golden triangle” of Melbourne–Sydney–Brisbane. Rex flight ZL352 takes off from Sydney Airport at 3:31pm local time after a 15-minute delay and touches down in Brisbane just over one hour later, at 3:38pm Queensland time. The flight marks not only a new milestone for Rex but comes just days after Queensland reopened its border to COVID-19 hotspot states, including NSW, Victoria and the ACT, on 13 December. Rex had similarly completed its inaugural Melbourne-Brisbane flight on 17 December.

February 25, 2022
Rex’s passenger numbers up 82 per cent despite COVID

Rex’s passenger numbers leap 82 per cent for the six months to December 2021 – despite Delta and Omicron lockdowns. The news is a result of the airline flying capital city routes with its new fleet of 737-800s and comes as the business announced a $53 million loss before tax for the same period. It comes a day after Qantas reports an underlying $1.28 billion loss before tax for its half-year figures, meaning the Flying Kangaroo had lost more than $22 billion in revenue since the beginning of the pandemic. Virgin doesn’t report its figures as a result of no longer being listed on the ASX.

March 9, 2022
Sharp says he’s had ‘tremendous fun’ with barbs to rivals

Rex’s deputy chairman admits he’s had “tremendous fun” making comments towards rival airlines. John Sharp adds his business “loves the fight” but says he is only defending Rex so strongly because it’s a “featherweight in the heavyweight section” battling to “stay in the ring”. “We’ve had some tremendous fun in the last 18 months or so with our public utterances,” he says. “I’ve enjoyed it enormously. We do it not because we want to say these things but because we want to survive. We want to grow.”

“That’s why I know we will ultimately succeed in this. It’s just a question of patience and a modicum of luck. And if there’s one thing I’ve learned in life, it’s that perseverance is a very substantial quality to have, and that’s one thing Rex has proven we have.”

August 2, 2022
Rex eyes return to profitability, more 737s

Rex announces that its regional revenue and passenger numbers have returned to pre-COVID-19 figures as it eyes a return to profitability within the 2023 financial year. In an ASX release, the carrier also states that it has nearly doubled its revenue across its domestic capital city network since April, returning $13.6 million in revenue in July. Further, the airline says its load factor, which measures the percentage of available seats filled by passengers, was 86 per cent in July across its network. It comes after various reports in preceding months stated that Rex had struggled to fill its newly acquired Boeing 737 jets on its main city routes.

October 24, 2022
Rex capital city 737 flights hit profitability

Rex’s capital city 737 flights hit profitability in September for the first time since resuming full operations in February 2022. Chairman Lim Kim Hai says the result was “truly unprecedented in the airline world” and adds the business is looking to acquire another two 737s to expand its fleet of seven. It comes a day after Virgin claimed to have hit real profitability for the first time since its damaging ‘capacity wars’ battle with Qantas, and weeks after the national carrier itself said it was targeting an underlying profit before tax of up to $1.3 billion in the first half of the current financial year.

February 28, 2023
Rex says share rise behind $16.5m half-year loss

Rex blames a rise in the value of its shares for recording an after-tax loss of $16.5 million in its half-year results. The airline says the overall deficit included the $23 million impact of 737-backers PAG converting their investment into equity in the company. The business also again brands Qantas “predatory” for launching services on previously Rex-exclusive routes, which it argues have been a drag on its performance.

April 24, 2023
Rex slashes regional flights across eastern Australia

Rex blames parts and labour shortages for its decision to cut back on numerous regional routes across four states. From 1 May, nine routes served by Saab 340 turboprop aircraft in Victoria, NSW, South Australia and Queensland see reduced services, with four more routes to have timings changed, and the Mildura–Adelaide service to be suspended altogether. “These adjustments are necessitated by the chronic shortage of airline professionals, particularly pilots and engineers, as well as the severe disruption in the supply chain of aircraft and engine parts,” says Rex’s general manager of network strategy, Warrick Lodge.

June 6, 2023
Rex says Qantas is “hoarding” take-off slots at Sydney Airport

Rex accuses Qantas of “hoarding” the most lucrative take-off time slots at airports, leaving smaller carriers with the “crumbs” of less popular times. John Sharp tells The Guardian it is “as plain as the nose on your face” that the Flying Kangaroo is “cancelling sufficient flights to remain within the 80-20 rule”. “We certainly have struggled to get slots at Sydney Airport in order to enable us to compete on the major routes, and as a consequence, we don’t get the best slots. We have to use the crumbs that are left on the table,” says Sharp.

August 30, 2023
Rex posts smaller-than-expected FY23 operational loss

Rex posts a full-year operational loss before tax of $31.7 million, just shy of the $35 million loss it predicted in June. The figure is still a dramatic improvement from Rex’s $109 million loss in the 2022 financial year, and it reports a statutory profit of $14.4 million thanks to a “positive fair value contribution” of $44.5 million from its September acquisition of FIFO operator National Jet Express (NJE). Rex had said in February it was “cautiously optimistic” it would be profitable in FY23 despite recording an after-tax loss of $16.5 million in its half-year results. In a surprise statement in June, however, the business had predicted a loss, blaming a global shortage of pilots and engineers, along with supply chain shocks post-pandemic that have forced schedule reductions.

October 2, 2023
Rex launches loyalty program to rival Qantas and Virgin

Rex formally launches its new Rex Flyer frequent flyer program to rival Qantas and Virgin, with customers able to redeem points on services from mid-November. The airline also says construction will begin “immediately” on new airport lounges in Adelaide, Sydney, Melbourne, and Brisbane.

December 14, 2023
Rex’s 737-800 fleet hits double digits as number 10 arrives

Rex reaches a new milestone with the delivery of its tenth 737-800 ahead of Christmas. Registered VH-8ZL, the plane touches down in Brisbane after its ferry flight from Goodyear, Arizona, where it had undergone heavy maintenance and painting. Rex puts the aircraft, which previously flew with Brazilian low-cost carrier Gol, into service that week.

February 2, 2024
Rex continues regional cuts until late October

Rex blames supply chain issues caused by COVID-19 for its decision to extend cuts to regional Saab services until 27 October. Warrick Lodge says Rex is “committed to the rebuilding of its regional network and intends to return to the standard flight schedules from 27 October 2024, subject to the situation improving.” The airline adds that the supply chain issues are heavily affecting the provision of spare parts, especially aircraft engine parts.

June 6, 2024
Rex appoints company veteran as new CEO

Rex executive chairman Lim Kim Hai is pushed out as the airline appoints a new local CEO. Neville Howell, Rex’s chief operating officer for the last 10 years, is to step into the CEO role for an initial two-year term, while deputy chairman John Sharp is appointed as non-executive chairman. Lim remains with Rex as a non-executive director and significant shareholder.

July 1, 2024
Rex jet services arrive in Western Australia

Rex domestic jets land in Perth for the first time with the commencement of services to Melbourne and Adelaide. Rex’s first interstate WA flight, ZL1212, takes off from Perth bound for Adelaide at 11:55am on 28 June aboard the National Jet Express E190 VH-ULB, while its first 737-800 flight to Perth, ZL873, arrives from Melbourne aboard VH-RQP.

July 12, 2024
Rex’s old boss looks to overthrow the board

Rex’s former executive chairman, Lim Kim Hai, launches an audacious bid to remove long-serving leader John Sharp from the board. In a statement to the ASX, Rex says Lim is seeking to remove four directors, including Sharp, and appoint two new ones in his capacity as a shareholder with a more than five per cent stake in the airline group. Aside from Sharp, Lim seeks the removal of Lee Thian Soo, Ronald Bartsch, and Jim Davis as directors of Rex, and the appointment of businessmen Lim Kang Song and Mukul Soul to the board.

July 22, 2024
Rex takes on rivals with “mischievous” ad campaign

Rex launches a new ad campaign to take on the two big domestic airlines. The “An Airfare to Remember” campaign, which looks to build awareness of Rex’s domestic jet operations, is rolled out by Rex in conjunction with agency T&Pm Australia, and uses humour and double entendres to get its message across. Social media ads as part of the campaign encourage passengers to “get back with your Rex”, “go all the way with your Rex” and “give your Rex a second look”, with one video reel saying that “your Rex comes with baggage” to highlight the airline’s baggage inclusions.

July 29, 2024
Rex halts share trade amid speculation on its finances

Rex shares are placed in a trading halt following a story published in The Australian claiming that Rex had called in a “turnaround team” from big four accounting firm Deloitte and that the airline has been having trouble turning a profit in its domestic jet operations. According to the report, Sal Algeri and Richard Hughes, who helped Virgin recover from voluntary administration, are leading the Deloitte team.

July 30, 2024
Rex enters administration

Rex enters voluntary administration with EY Australia following days of speculation. Regional Saab 340 flights are unaffected and continue to operate, while subsidiaries Pel-Air Air Ambulance Services and Australian Airline Pilot Academy also remain outside of administration and under the control of their respective directors. Domestic 737 services are formally grounded, but Virgin Australia (and later Qantas and Jetstar) offer impacted Rex passengers free rebooking.

July 30, 2024
Virgin swoops for Rex 737s in remarkable turnaround

Virgin agrees to take the leases of three Rex 737s following the smaller carrier’s collapse into administration. The news caps a sensational turnaround after Rex took the leases of old Virgin aircraft following its collapse during the COVID-19 pandemic in 2020.

“These aircraft will be used to support Virgin Australia’s existing published schedules,” Virgin says. “It will also provide us with capacity to respond if market growth accelerates faster than currently anticipated. Securing these three aircraft will have the additional benefit of enabling Virgin Australia to hire more cabin crew and pilots, creating jobs that will be made available for impacted Rex employees.”

July 31, 2024
Rex cuts 610 jobs as jet operations hit the scrap heap

More than 600 jobs go at Rex as the airline drops its domestic jet operations after entering administration. According to the TWU, administrators had said 360 Rex domestic jobs will be made redundant and 250 regional jobs are also facing the axe. “This is another dark day for aviation, with over 600 families faced with sudden joblessness in an industry that has taken hit after hit,” TWU national secretary Michael Kaine says.

August 11, 2024
Rex founder claims ‘rude’ Lim blocked takeover

The co-founder of Rex reveals he had assembled a consortium to take over the collapsed airline in September 2023. However, Michael Jones says the investors were rebuffed by former chairman Lim Kim Hai, who he brands “rude, dismissive and not interested”. Jones says that while he thought Lim was “incredibly intelligent” he was “becoming a megalomaniac – the belief in himself and the delusion”.

August 15, 2024
Government guarantees Rex regional flights

The federal government guarantees regional flight bookings for Rex while the airline remains in voluntary administration. In a statement, Transport Minister Catherine King announces that passengers on all regional flights booked through Rex since it entered administration at 9:31pm on 30 July will “either fly or get their money back”.

“This will give customers confidence to continue booking regional flights with Rex – flights that allow them to stay connected to family, friends, healthcare and other services – while also helping to maintain regional aviation in Australia,” she says.

September 5, 2024
Rex administrator nixes plan to sell 4 active planes

Australian Aviation reveals Rex was attempting to sell four aircraft operating key regional routes before entering administration. The aircraft had all flown multiple times that week and were listed for sale despite the carrier cutting services because of a lack of aircraft parts and labour. After being contacted by Australian Aviation, administrator EY Australia confirms the four Saab 340Bs, registered VH-RXE, VH-ZLX, VH-ZJS, and VH-ZRH, were advertised through global firm C&L before the administrator took control of the airline, and were subsequently taken off the market.

September 30, 2024
‘No obvious buyers’ for Rex, claims source

A source purportedly close to the Rex administration says there have been “no obvious buyers” for the regional carrier as EY Australia continues the sale process. The Australian reports that no single buyer has come forward, according to the source, though several items – including a small house near Sydney Airport, the airline’s 737 flight simulator, and an inventory of spare parts – have been sold to provide some extra cash. The unnamed source tells the newspaper that interested parties have looked at picking up charter airline Pel-Air, as well as the Rex flight training academy.

October 28, 2024
Toll buys Rex aeromedical wing Pel-Air for $47m

Toll Aviation confirms it will pick up Rex’s aeromedical arm Pel-Air, including its valuable fixed-wing air ambulance contracts, in a $47.1 million deal.

Toll, owned by Japan Post, already operates helicopter air ambulance services for NSW and the ACT, with the confirmation of the previously-rumoured acquisition adding NSW and Victoria’s fixed-wing services to its stable. The entire Pel-Air fleet, including eight Beechcraft King Air B200/300 series turboprops and two Pilatus PC-24 jets, will form part of the purchase alongside the contracts.

November 12, 2024
Government injects $80m to keep Rex flying

The federal government offers a financial lifeline to Rex as its administrators seek to extend their appointment. $80 million in financing is provided to keep the business and its regional services afloat as EY Australia continues to search for a buyer, with the administrator applying to the Federal Court to extend the voluntary administration to 30 June 2025. “The financing will support the business to continue offering critical services for regional communities,” says Transport Minister Catherine King.

November 22, 2024
Rex administration to continue until June 2025

The Federal Court grants EY’s application to stay on as administrator for the regional airline until 30 June 2025. Transport Minister Catherine King welcomes the extension, saying it gives EY “the best possible opportunity” to implement a plan to save Rex.

December 11, 2024
ASIC sues Rex for ‘misleading and deceptive conduct’

ASIC announces it is taking Rex and four of its directors to the NSW Supreme Court, alleging the company misled the ASX over its financial performance. The corporate watchdog says the company released a misleading ASX statement on 28 February 2023 saying it was “optimistic the Group will have positive operating profits for the full FY23 barring any further external shocks”, despite not having any reasonable basis for such a claim. The regulator also alleges that former executive chair Lim Kim Hai, as well as directors John Sharp, Lincoln Pan and Siddharth Khotkar, breached their duties as directors.

January 23, 2025
Federal government confirms it will buy $50m of Rex debt

The federal government gains a larger say over the future of Rex after confirming reports it would acquire $50 million of the collapsed airline’s debt. The move sees the Commonwealth buy out the remainder of the money owed to PAG, the Asian firm whose investment allowed Rex to launch capital city 737 flights in 2021. Acquiring the debt makes the federal government the largest creditor and gives it a stronger voice in whether Rex is ultimately liquidated, returned to its directors, or placed under a Deed of Company Arrangement (DOCA) to stay operational.

February 12, 2025
Government may nationalise Rex if buyer not found

The federal government says it may step in to purchase Rex if a commercial buyer is not found for the collapsed airline. The announcement is the clearest signal yet that the airline could become the first to be owned by an Australian government since Qantas was privatised in the 1990s. In a statement, the government says it still wants to see the airline sold and will work with administrator EY Australia and potential buyers to determine the level of support it can offer.