Increased Competition in the Australian Airline Industry: Rex Airlines Launches New Flights between Melbourne and Perth
Rex Airlines, one of Australia’s leading airlines, is set to launch new Boeing 737 flights between Melbourne and Perth in an effort to challenge the dominance of Qantas and Virgin Australia. This move is expected to benefit consumers by increasing competition and providing more options for domestic travelers.
According to the latest data from Statista, Perth saw approximately 4.46 million domestic overnight visitors in 2023, making it the second-highest number of domestic travelers to the city since 2019. With the introduction of Rex Airlines’ new service, close to 90,000 additional seats will be available on one of the busiest routes in the country. This increase in capacity is not only expected to benefit trade between Melbourne and Perth but also boost tourism between the two cities.
“We are delighted to be bringing our Boeing 737 fleet to Perth, connecting more Australians with friends, colleagues, and loved ones, and we look forward to welcoming all on board,” said Warrick Lodge, Rex’s general manager of network strategy. The entry of Rex into this market will provide customers with more choices and potentially lead to lower fares due to increased competition.
The new route between Melbourne and Perth will be Rex’s 11th domestic service flown with its Boeing 737 fleet. The airline has been steadily expanding its operations beyond the “Golden Triangle” of Sydney, Melbourne, and Brisbane, with destinations including Adelaide, Canberra, Hobart, and the Gold Coast. This expansion not only creates job opportunities but also boosts connectivity between different regions of Australia.
The announcement of direct flights between Melbourne and Perth has been welcomed by government officials from both Victoria and Western Australia. Victorian Government Minister for Jobs Nathalie Hutchines expressed her excitement, stating, “This is fantastic news for Victoria, having direct flights between Melbourne and Perth with Rex will create local jobs, increase our capacity on a key flight route, while bringing more visitors to our great state.” Western Australia’s Deputy Premier Rita Saffotti also highlighted the positive impact on state tourism, saying, “We always love welcoming Victorian friends to the west coast, so this is a fantastic announcement for tourism and our local industry here in Western Australia.”
The tourism industry plays a significant role in both Western Australia and Victoria. In Western Australia, tourism contributed 110,800 jobs and $13.2 billion to the state’s economy in the 2022-2023 period. Meanwhile, Victoria saw 89.2 million tourists visiting the state in 2023 from domestic and international sources, as reported by the Ministry of Tourism.
This development comes at a time when concerns have been raised about reduced options for domestic flight travelers going to regional destinations following the collapse of start-up airline Bonza. The Australian Competition and Consumer Commission (ACCC) expressed its concerns regarding this issue. However, with Rex Airlines entering the market, there is hope that the competition will be revived and travelers will have more choices.
According to the most recent Domestic Airline Competition in Australia report, Qantas, Virgin, Jetstar, Rex, and Bonza carried 4.9 million domestic passengers in March, accounting for 98.8 percent of the passenger levels recorded in March 2019. This indicates the significant role these airlines play in the domestic travel sector.
In conclusion, Rex Airlines’ decision to launch new flights between Melbourne and Perth is expected to bring benefits to consumers, trade, and tourism in both cities. The increase in competition is likely to result in more options for travelers and potentially lower fares. Additionally, this expansion reflects Rex’s commitment to connecting different regions of Australia through its growing Boeing 737 fleet. With the support of government officials and the positive impact on job creation and local economies, this move is set to strengthen the country’s airline industry and enhance connectivity across Australia.
