Qantas steps up Rex battle with new Orange service

Qantas has jumped on another regional route in a move likely to enrage rival carrier Rex.

Qantas plans to run 11 return flights a week between Sydney and Orange. Picture: Supplied.

Qantas is making another foray into regional Australia in a move that will see it go head to head with Regional Express Airlines.

From May 1, QantasLink will operate up to 11 return flights a week between Orange and Sydney on a mix of Q300 and Q200 aircraft that have come off axed routes in regional New Zealand.

The flights will add more than 45,000 seats to a route currently serviced only by Rex, with up to 25 return flights a week.

QantasLink CEO John Gissing said Orange, in New South Wales’ central west, was a “thriving place with an increasingly diverse economy” and locals had long called for the Flying Kangaroo to operate there.

“There’s growing demand for a premium airline to connect business and leisure travellers,” Mr Gissing said.

“These additional flights will make it easier for Sydney residents and domestic and international tourists to discover one of New South Wales’ most beautiful regions.”

Rex is not expected to welcome the competition from Qantas after recently accusing the larger airline of “anti-competitive behaviour”.

A QantasLink Q300 will be used along with Q200s on new flights between Sydney and Orange from May. Picture: Supplied

A complaint made to the Australian Competition and Consumer Commission alleged Qantas was abusing its market power by adding flights to routes that Rex had long serviced.

These included Adelaide-Whyalla, Adelaide-Kangaroo Island and Sydney-Ballina, with Rex announcing it had been left with no option but to withdraw from Kangaroo Island and Ballina this year.

Rex was now in the process of making a “supplementary submission” to the ACCC which was assessing the complaint.

“We believe that Qantas’s recent actions do not reflect competition on merits which the law requires but rather are an attempt to abuse their dominant market power and financial strength,” said a Rex spokeswoman.

She said it would be catastrophic for the Orange community if Rex pulled out all of its weekly slots to Sydney.

“Rex will be loathed to do that but will have to do so if the Orange business community is not supportive of Rex,” she said.

“Qantas has no slots during the peak business demand periods.”

Mr Gissing fired back, suggesting Rex was “clearly uncomfortable with QantasLink bringing competition to the route”.

“As the sole operator between Sydney and Orange they have been able to charge what they wanted for decades,” he said.

“Having another carrier on this route will create more competitive airfares and stimulate more demand for people to visit Orange.”

Growing numbers

Orange Mayor Reg Kidd welcomed the Qantas announcement as a “major boost for the region”.

“Orange’s passenger numbers have been growing steadily in recent years as the regional economy has expanded, using the airport as a key connection,” Mayor Kidd said.

“It’s fantastic that Qantas sees themselves as part of this growing region.”

Qantas was offering a special sale fare of $129 one way, for the 50-minute flight if booked before February 17.

Orange will be the 13th destination serviced by Qantas in New South Wales, joining Sydney, Albury, Armidale, Ballina, Coffs Harbour, Dubbo, Lord Howe Island, Moree, Newcastle, Port Macquarie, Tamworth and Wagga Wagga.

QantasLink flights to Ballina will begin in late March, and the carrier will double services to Kangaroo Island from July, following Rex’s withdrawal.