News
Rex plans to take up to eight more 737-800s before year-end 2022
November 25th 2021
Australia’s Regional Express (Rex) is planning to significantly expand its domestic operations next year with the addition of up to eight 737 jets. Read More » Rex chairman, Lim Kim Hai, told shareholders at the company’s annual meeting on Thursday the airline planned to take two additional B737s before April with up to six more coming into the fleet by the end of 2022. “These additional 737s will underpin our expansion plans in the months ahead, especially in Queensland,” Lim said. Rex has started construction of a simulator facility adjacent to its Mascot headquarters to house a 737 full flight simulator. After grounding its 737s during recent COVID-19 lockdowns, Rex sprang back to life this month, announcing new routes between Melbourne and Brisbane and Sydney and Brisbane. It also was awarded six regulated routes in Queensland, including one previously operated by arch rival, QantasLink, to increase the number of its destinations in the state to 25. Lim told investors the airline performed “relatively well” in fiscal 2021, improving its performance compared with a year earlier to post a pre-tax loss of A$7.2 million (US$5.19 million). This translated to an underlying loss before tax of A$18.4 million when mark-to-market adjustments for its A$150 million funding agreement with Singapore investment firm, PAG, were considered. Lim said “all hands were on deck to ensure the survival of the company” and manage the devastating effect of the pandemic. “With lockdowns hopefully a thing of the past and state borders re-opening, we hope to be back flying at full capacity,” he said. “2022 will be an exciting time for us all.” Rex is not the only airline planning to expand its fleet. Virgin Australia recently signed a Letter of Intent to take seven additional B737s. Rex and the other incumbent Australian domestic airlines also face the wild card of a proposed ultra-low-cost entrant, Bonza, entering the market with cost-efficient 737 MAXs.
