Rex reveals new strategy in route war with Qantas

Rex is trying a new strategy in its bitter war with Qantas, announcing plans to jump on a route where its rival is currently the sole operator.

A Rex SAAB 340 at Sydney Airport. Pilots will vote on a series of work bans this week, including four-hour stoppages, in an effort to secure a better deal. Picture: AAP

Rex is preparing to give Qantas a dose of its own medicine, when the airline launches flights on a route where the flying kangaroo is the sole operator.

After repeatedly complaining of Qantas encroaching on Rex territory, the smaller airline has made the decision to provide passengers with an alternative on the Melbourne-Devonport route.

Rex deputy chairman John Sharp said their decision to pull off the Melbourne-Albury route in the face of competition from Qantas had made the new route possible.

Beginning in August, the route will be Rex’s third into Tasmania, with fares to be announced in coming weeks.

Mr Sharp said the Devonport community had courted Rex for over two years in the hope of securing lower fares and better service on flights to Melbourne.

“We did not respond earlier to the pleas of the community as we had limited resources then and we wanted to give priority to our existing network,” Mr Sharp said.

“Qantas’s predatory attacks on Rex’s network mean that we no longer can support the marginal routes and we need to channel our resources to the biggest regional routes where the financial returns are much better.”

Rex recently announced the axing of five regional routes, in addition to Melbourne-Albury and Sydney-Canberra, with two more under review.

Despite Rex blaming Qantas for the changes, an Australian Competition and Consumer Commission investigation found no evidence of predatory behaviour by the larger airline.

A Qantas spokesman said unlike Rex, they welcomed competition.

“Just as we have for decades, we’ll continue providing a high-quality service to the people of Devonport with all-inclusive fares and lounge access for frequent flyers,” he said.

“Customers can also connect via Melbourne to our extensive domestic and international network.”

Rex deputy chairman John Sharp. Picture: Tim Hunter.

Mr Sharp said further changes to the Rex network are in the pipeline but these would deliver more services for regional routes.

“At the start of the new financial year our regional capacity will be higher compared to pre-Covid levels,” said Mr Sharp.

First the airline will need to come to a new agreement with pilots of its Saab 340s, with industrial action being threatened over the upcoming July school holiday period.

A protected-action ballot will be put to pilots on Wednesday with eight options to vote on, ranging from variations to uniform to rolling four-hour stoppages.

The Australian Federation of Air Pilots (AFAP) sought permission to ballot members after rejecting a new pay offer from Rex in drawn out enterprise bargaining negotiations.

AFAP claimed the offer was the “worst yet” and would represent a real-term cut in salary of 5 per cent since 2018.

Rex disputed the claim, saying the offer was better than the one AFAP had accepted on behalf of QantasLink pilots in late 2021.

“Rex has offered its Saab pilots a 5.1 per cent pay rise from July 1, plus significant catch-up payments worth another 8 per cent once the business is profitable again,” Mr Sharp said.

“Rex is the only airline not to have retrenched any of its pilots through the difficult Covid years, and we believe they will stand by the company.”

The 300 Saab 340 pilots will have a week to vote in the ballot, with action to begin soon afterwards providing more than 50 per cent support the work bans and stoppages.