Rex Airlines ups the ante on Qantas in fly-in-fly-out market

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Rex Airways has finalised its acquisition of fly-in-fly-out operator Nationwide Jet Specific (NJE), the regional arm of Cobham Aviation, for $48 million whereas Qantas’ takeover of FIFO rival Alliance Australia awaits watchdog approval.

Rex Airways government chairman Lim Kim Hai indicated the corporate supposed to overhaul Alliance Australia as Australia’s main FIFO operator by means of “daring plans to develop and rework” NJE.

Rex Airlines has completed its acquisition of fly-in-fly-out operator National Jet Express.

Rex Airways has accomplished its acquisition of fly-in-fly-out operator Nationwide Jet Specific.Credit score:Sam D’Agostino

“Useful resource firms throughout Australia can now depend on a contemporary, comfy and environmentally pleasant fleet for his or her FIFO wants as a substitute of counting on 30-year-old Fokker 100 plane used predominantly by the opposite operators,” stated Lim.

Rex Airways will lease two new plane so as to add to its fleet and indicated it’s trying to broaden into Queensland and the Northern Territory particularly.

“We’ll proceed to spend money on new plane and know-how to develop the enterprise, particularly in Queensland the place useful resource firms have been dealing with extreme points with capability and reliability lately,” Lim stated.

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In the meantime, Qantas’ $614 million proposed acquisition of Alliance Australia has been on maintain for months after the Australian Competitors and Shopper Fee (ACCC) expressed preliminary issues about decreased competitors.

“We’re involved that this proposed acquisition is prone to considerably reduce competitors for air transport companies to and from regional and distant areas in Queensland and Western Australia for company clients,” stated ACCC chair Gina Cass-Gottlieb stated in mid-August.

The ACCC gave Rex the inexperienced gentle for its buy of NJE lower than two weeks after the preliminary announcement.

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