After Regional Express chose to publicly spruik its plan to compete with major carriers on capital city routes, the company could face millions in fines. On 12 May, Rex deputy chairman John Sharp announced to The Australian Financial Review that the company was seeking $200 million to fund the move, without giving prior notice to
Rex aims to rival Qantas, Jetstar and Virgin Australia by expanding its network to service capital cities by early next year.
Rex has had its application granted to operate one to two return services per week on most of its network underwritten by the government’s $298 million regional aviation finance package.
On Wednesday, Rex temporarily reversed its decision to suspend Queensland passenger flights after a last-minute intervention from the state’s government. The announcement is the latest in a dramatic negotiation between regional airlines and state and federal government, that has featured brinkmanship and U-turns from both camps. This content is available exclusively to Australian Aviation members.