Rex Airlines starts flying new Hobart–Melbourne route with one-way flights for as low as $79

A new airfare war could be on the way with a fourth airline about to fly between Hobart and Melbourne, with the new player offering one-way flights for as low as $79. What it means for you.

Rex Airlines Deputy Chairman, John Sharp and Tasmanian Premier, Jeremy Rockliff at the Launch of new flights from Melbourne to Hobart. Picture: Linda Higginson

Rex Airlines begins its new Hobart-Melbourne flights on Thursday and there are hopes it leads to cheaper airfares.

Business and the tourism lobby have hailed Rex’s expansion to Hobart with Small Business Council of Tasmania head Robert Mallett optimistic it will lead other airlines to cut the price of fares.

“We applaud anything that increases competition and hope it will see a decrease in prices to help businesses and travellers,” he said.

“There are not enough flights coming in and we’re very happy they (Rex) are here.”

John Sharp, deputy chair of Rex Airlines said forward bookings for the daily flights – which have economy tickets as low as $79 and business class from $349 – have been “very encouraging”.

L-R Hobart Airport chief executive, Norris Carter. Rex Airlines Deputy Chairman, John Sharp and Tasmanian Premier, Jeremy Rockliff at the Launch of new flights from Melbourne to Hobart. Picture: Linda Higginson

“Because our fares are affordable and reliable, the competition will try to lift its game and we will see some reduction in fares,” he said.

“We’re pleased with the way the bookings are building as travellers seem to be embracing our full service offering at an affordable price,” he said.

“I think they recognise that we’re a safe, reliable airline with a very good on-time-performance record.

“We are confident we can grow the market in a slow, measured manner and the early indications are there is good support for what we are offering.”

Hobart is Rex’s fourth Tasmanian destination as the airline already flies to Burnie, Devonport and King Island.

Regional Express Holdings already flies Tasmanian routes including Burnie, Devonport and King Island. Photo - Getty Escape 19 March 2023

The flight leaves Melbourne at 12.15pm and the Hobart-Melbourne flight takes off at 2.15pm.

Tourism Industry Council Tasmania chief executive Amy Hills said increasing air capacity in and out of Tasmania was “incredibly important”.

“As an island state, we rely on reliable and affordable access. This is obviously important for our visitor economy, year round, but also for Tasmanians,” she said.

“This is another sign that Tasmania’s brand and reputation as a destination is very strong and we know that Victoria is one of our strongest visitor markets, so as an industry we’re looking forward to a strong upcoming summer season.”

Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said the expansion of Rex was “great news for the Tasmanian community”.

“The more competition we have in the skies of Tasmania, the better it is for the community,” he said.

“Not only does it mean it’s easier and cheaper for Tasmanians to travel for work or to visit family and friends, it also makes it easier for people to come to Tasmania and support our visitor economy.”

Hobart Airport chief executive Norris Carter welcomed “more choice for the travelling public”.

“We are delighted to see Rex come to Hobart Airport and have put everything in place to make the airline feel as welcome as possible,” Mr Carter said.

The Australian Competition and Consumer Commission in its final report into airline competition in Australia, released in June, said a lack of competition was a “key reason” why the aviation industry had “generally underperformed”.