Rex given reprieve by ACCC, allowed to fly three SA routes

REX Airlines has been granted an interim authorisation from the ACCC to fly three South Australian routes

REX Airlines has been granted an interim authorisation from the Australian Competition and Consumer Commission to co-ordinate with Qantas and Virgin on 10 regional routes including Port Lincoln, Whyalla and Kangaroo Island.

It will now enable Rex, QantasLink and Virgin to share revenue from providing services on the routes. But, it is conditional on the airlines charging fares no higher than those in place on February 1.

ACCC chairman Rod Sims said he hoped this temporary measure would support the airlines’ ability to compete with each other on these routes once the pandemic crisis has passed.

ACCC Chair Rod Sims. Picture: Zak Simmonds

“The ACCC stands ready to urgently assist airlines with any co-ordination arrangements that are necessary and appropriate during this crisis,” Mr Sims said.

Rex deputy chairman John Sharp welcomed the move but warned it alone would not be enough to keep the airline afloat during the next three months.

Last week, Rex slashed 74 flights to regional areas across South Australia, while Qantas suspended almost 50 per cent of its regional flights.

Rex has since announced it will be suspending all flights to Ceduna, Coober Pedy, and Mount Gambier and Port Augusta.

Rex and QantasLink will now share the Port Lincoln and Whyalla routes, which will mean only one of the airlines will operate one return service per day.