Rex unveils plan to undercut Qantas on city routes

Rex is promising to deliver a ‘Qantas experience at Jetstar prices’ as it prepares to launch flights on capital city routes from March.

Rex has unveiled its new livery on a Boeing 737 ahead of the launch of Sydney-Melbourne flights in March, 2021.

Regional Express airlines has fired the first shots in a looming price war, as the carrier seeks a slice of the lucrative Sydney-Melbourne travel market.

From March 1, Rex will operate flights on six Boeing 737s between the two cities, with 100,000 seats on sale from Wednesday for $79 one way.

The price undercuts the latest Qantas sale on the route by ­almost $50.

Rex deputy chairman John Sharp said that, outside of the sale, fares would still be cheaper than Qantas and Virgin Australia, at between $99 and $119 one way, and from $299 for business class.

All fares will include 7kg of carry-on and 23kg of checked baggage, and a snack plus water, tea or coffee.

In-flight entertainment will be available from April and Wi-Fi access can be bought for $6.50 in the main cabin.

Mr Sharp said that due to its low cost base, Rex was in a position to deliver a “Qantas experience at Jetstar prices”.

“We can afford to do that because we’ve been a very low-cost airline operator for a long time,” he said.

“We own all our own buildings, we don’t have to pay rent or interest, and we own all of our aircraft except for the 737s we’re leasing for these services.”

Rex lounges were improved in Sydney and Melbourne and new facilities are to be established in Brisbane and Adelaide.

The airline was also recruiting 150 more pilots and cabin crew, with no shortage of candidates available due to drastic cuts made by Qantas and Virgin.

Mr Sharp said Rex would retain a key point of difference from its rivals by providing “country-style hospitality” on board. “It’s always been a very positive aspect of our operation,” he said.