Rex Airlines recently announced the addition of new routes between Perth-Adelaide and Melbourne-Perth, with experts predicting that these routes will improve regional connectivity and potentially lead to lower airfares. Keith Tonkin, Managing Director of Aviation Projects, believes that the new routes will benefit travelers by providing better access to Rex’s regional services in Western Australia. Additionally, he expects that the increased competition on these routes will likely result in reduced fares. However, Ian Douglas, a Senior Lecturer at the School of Aviation at the University of New South Wales, believes that the impact on fares will be marginal, particularly on the Melbourne-Perth route where Qantas/Jetstar and Virgin Australia already operate numerous daily flights.
Rex Airlines plans to operate flights between Perth and Adelaide three times a week using Embraer E-190 jets operated by its group member National Jet Express (NJE). According to Anthony Gibara, NJE Director, there were nearly 85 canceled flights by Virgin and Qantas carriers on this route in the first four months of 2024. He also mentioned that Virgin’s on-time arrivals and departures were subpar, with only 56 percent of flights arriving on time and 59 percent departing on time during that period. Gibara believes that travelers deserve better service, which Rex Airlines aims to provide. The airline plans to increase the number of services once it establishes itself on the route.
Similarly, Rex Airlines plans to launch a Melbourne-Perth route operating five days a week. Warrick Lodge, Rex General Manager Network Strategy, highlighted that their competitors had canceled 57 flights on this route in the first four months of 2024. Additionally, their combined on-time arrival and departure performance was only around 72 percent. This indicates room for improvement and suggests that Rex Airlines can offer more reliable service on this route.
Both the Perth-Adelaide and Melbourne-Perth flights are set to commence on June 28. The one-way economy fare for the Perth-Adelaide route will start at $249, while the Melbourne-Perth route will begin at $299 for economy class and $999 for business class. These prices offer competitive options for travelers.
However, while Rex Airlines’ expansion is promising for domestic air travel, the recent exit of Bonza from the Australian market will undoubtedly impact regional travel. Mr. Douglas noted that Bonza’s departure will be felt in the regional centers it served and will also impact Sunshine Coast airport. Nevertheless, in terms of total revenue generated in Australia this year, the grounding of Bonza is unlikely to have a significant impact.
The Australian Competition and Consumer Commission (ACCC) acknowledged that Bonza’s suspension of operations will result in a reduction of direct connections at Maroochydore airport in Sunshine Coast from 14 to three, as well as a decrease in direct connections at Coolangatta airport in Gold Coast. However, due to the airline’s small fleet size and exclusion from the busiest routes, Bonza holds less than 2 percent of market share.
In conclusion, Rex Airlines’ introduction of new routes between Perth-Adelaide and Melbourne-Perth is expected to enhance regional connectivity and potentially lead to lower airfares. While experts believe that the impact on fares may be marginal, the increased competition is likely to benefit travelers. Nonetheless, the exit of Bonza from the market will have repercussions for regional travel, although its overall impact on the Australian aviation industry is expected to be limited.
