Rex eyes international market in historic deal with Delta Air Lines

Rex has signed an historic deal with one of the world’s biggest airlines to boost its domestic and regional flights in Australia.

Rex is laying the groundwork for an international business after inking a partnership with Delta Air Lines. Picture: Joe Corrigan

Rex is dipping its toe into the international aviation market, signing a historic partnership with the world’s second-biggest airline, Delta. 

The commercial agreement, due to take effect in the second half of the year, will help deliver international passengers to Rex on domestic and regional flights in Australia. 

Currently Delta Air Lines operates daily into Sydney from Los Angeles, with plans to go to 10 flights a week from December.

Other Australian ports could also be added in coming months by Delta, which operates over 4000 flights a day to more than 250 destinations on six continents.

Delta previously partnered with Virgin Australia but was dumped by the carrier in December 2021 in favour of United Airlines. At the time a Delta spokesman said they were “disappointed with Virgin’s decision to partner with a competitor” after a 10-year association.

The “divorce” becomes official in June.

Rex deputy chairman John Sharp described the deal with Delta as a “milestone moment for Rex and our passengers”.

“Rex is delighted to forge a partnership with America’s most awarded airline,” said Mr Sharp. “Our tie-up with Delta will help boost the post-Covid return of long-haul international travel.”

He said the arrangement would give Delta’s passengers easy access to Rex’s network of over 60 routes throughout regional Australia as well as trunk domestic routes.

The commercial agreement with Delta, due to take effect in the second half of the year, will help deliver international passengers to Rex on domestic and regional flights in Australia.

Delta vice-president of alliance partner development Jeff Arinder said Rex would be a “valued partner and bring additional connectivity and geographic reach to both airlines”.

“We look forward to welcoming more customers to our flights from Sydney to the US and providing a world-class customer experience in the air and on the ground.”   

The deal is subject to Australian Competition & Consumer Commission approval.

It means passengers can change from Delta to Rex or vice versa without having to collect and recheck their bags.

Known as an interline airline agreement, the deal differs from a codeshare where airlines market each other’s flights and earn a percentage from ticket sales.

Mr Sharp said Rex was still some way off operating their own international services but short haul overseas flights were a real possibility in the next four to five years.

The airline, previously known as Regional Express, underwent a significant expansion into major domestic routes last year, adding six Boeing 737-800s to its fleet of SAAB 340s.

The jets operate on major city routes including the “Golden Triangle” of Sydney-Melbourne, Brisbane-Sydney and Brisbane-Melbourne, as well as Gold Coast services.

Up to four more narrow body jets are expected to join the Rex fleet in coming months as travel demand grows in the wake of the Covid pandemic.

Rex is also understood to be finalising its own frequent flyer program to reward loyal passengers, to compete with Qantas’s juggernaut loyalty scheme and Virgin Australia’s Velocity.

The ACCC has credited Rex with putting significant downward pressure on airfares as a result of its expansion, with Virgin Australia recently matching Rex’s “standard” business class fare of $299 on capital city routes.

Originally published as Rex eyes international market in historic deal with Delta Air Lines