Qantas challenges Rex on NSW south coast route

Qantas has added a new intrastate route to its network, to the NSW south coast, sparking an angry response from Rex.

Qantas has announced flights to Merimbula as the airline explores new routes for travellers in the COVID crisis. Picture: Merimbula Visitor Information Centre

Regional Express has added Sydney-Merimbula to the list of routes it plans to axe, after Qantas announced it would start operating four flights a week on the route.

In a letter to Bega Valley Mayor Russell Fitzpatrick, Rex corporate communications manager Jessica Makarewitsch said they did not believe passenger numbers supported viable operations for two carriers.

Qantas announced on Friday it would put 50-seat Q300 turboprops on the route from December 18, in response to the demand for intrastate travel due to border restrictions.

QantasLink CEO John Gissing said it was an opportunity to bring more tourists to Merimbula.

“This will be the first time that the flying kangaroo has flown to the Sapphire Coast, which will mean more competitive fares on a route that has been a monopoly for decades,” Mr Gissing said.

“We’ll be promoting Merimbula to millions of our frequent flyers across the state in the lead up the flights commencing.”

Rex is currently the only airline operating on the route, which it flies in triangulation with Moruya to “ensure viability”.

The regional operator complained to the Australian Competition and Consumer Commission in February, accusing Qantas of dumping excess capacity on routes in an effort to squeeze out the smaller operator.

It followed the launch of new or additional flights by Qantas on a number of regional routes, including Sydney-Ballina, Adelaide-Whyalla and Adelaide-Kangaroo Island.

In response Rex announced it would pull out of Kangaroo Island and Ballina but was continuing to operate on those routes as part of a government-subsidised regional air network.

The airline has also flagged plans to launch services on the “Golden Triangle” of Melbourne-Sydney-Brisbane, after taking delivery of six Boeing 737s previously leased by Virgin Australia.

Rex would compete with Qantas, Jetstar and Virgin on the capital city routes, which were among the busiest and most lucrative in the world pre-COVID.

Bega Valley Shire Mayor, Russell Fitzpatrick said the new Qantas flights to Merimbula would bring greater choice and value for customers, and bring more people to the region.

“There is no doubt these new services come at a good time,” Mr Fitzpatrick said.

“The summer bushfires and COVID-19 restrictions have hit our tourism industry hard, but with improved access to this beautiful part of the world we can now work towards a strong recovery.”

To celebrate the new Sydney-Merimbula route, Qantas was offering sale fares of $149 one-way for three days, unless sold out prior.