- Regional Express (Rex) is in negotiations with investment firm PAG Asia Capital to secure $150 million.
- The funding will be used to help launch Rex’s domestic flights between major Australian capital cities.
- These flights are tipped to begin in March 2021.
- Visit Business Insider Australia’s homepage for more stories.
Rex is edging closer to getting domestic city flights up and running.
The regional airline revealed it is in negotiations with investment firm PAG Asia Capital for an investment of up to $150 million to aid the launch of its domestic operations across major cities. These flights are set to take off from March 1 2021.
The funding, however, is subject PAG completing due diligence and Rex getting shareholder and regulatory approvals. But once it’s complete, PAG will be able to nominate two directors to join the Rex Board.
Rex Executive Chairman, Mr Lim Kim Hai said PAG manages more than US$40 billion on behalf of major global institutional investors and was “encouraged by the progress of Rex’s negotiations to date”.
“With PAG’s support, I have every reason to believe that Rex can successfully launch its domestic major city jet operations,” he said in a statement.
“As a well-established carrier with an impeccable track record, I am confident that Rex will deliver to Australians an alternative major city domestic service that is safe, reliable and affordable. Rex’s affordable fares will support Australia’s economic rebuild and recovery efforts.”
Back in May, the Australian Financial Review reported Rex’s plans to raise $200 million in its bid to fly between Aussie capital cities Sydney, Melbourne, Adelaide, Brisbane and Perth. These flights would compete with Qantas, its subsidiary Jetstar, and Virgin Australia.
As the airlines continue working out how soon they can return to the skies amid border closures and travel restrictions, the Australian Competition and Consumer Commission vowed to keep an eye on anti-competitive behaviour in the industry.
It will be monitoring flight capacity, passenger numbers and revenue data from Virgin, Qantas and Rex each month and sending reports to the government.
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