Rex prepares to compete with Qantas, Jetstar and Virgin; first Boeing 737-800 delivered

6 January 2021 © David Eyre

Rex (Regional Express Airlines) announced in May 2020 that it intended to compete with Qantas, Jetstar and Virgin Australia by leasing 10 narrow-body jets to operate domestic services to capital cities by early 2021.

The airline plans to fly between Sydney, Melbourne, Brisbane, Adelaide and Perth, subject to Coronavirus travel restrictions being lifted.

Rex is aiming to be a ‘hybrid airline’, between a full-service airline and a low-cost airline, which is also the level at which the ‘new’ Virgin Australia intends to operate.

With Virgin in the midst of voluntary administration due to financial difficulties, Rex seized the opportunity to upscale its operations.

Regional Express has been operating for 18 years and until now had a fleet of 57 Saab 340 turboprops, operating regional routes.

In August 2020, the Australian Financial Review reported that Rex was negotiating with aircraft lessors to acquire 10 ex-Virgin Australia Boeing 737-800s not required by the new, smaller Virgin.

The first ex-Virgin 737-800, VH-VOP, had its Virgin Australia livery removed at Wellcamp Airport in Queensland, before being delivered to Rex in Sydney on 5 November 2020. It was later repainted in full Rex livery at Jakarta as VH-RQC. The second aircraft is VH-VUF.

Rex plans to launch Sydney-Melbourne flights on 1 March 2021, by which time it will have five more 737s. It will add Brisbane in early April 2021.