Aviation

Rex seals $150m funding deal for launch of capital city operations

Regional Express (Rex) has signed an agreement with PAG Regulus Holdings (PAG) that will see the airline receive up to $150 million exclusively for the launch of its domestic major city jet operations in March next year.

The funding comprises first-ranking, senior secured convertible notes. An initial funding tranche of $50 million will be drawn down towards early January 2021, with the balance of the funding available for Rex to draw down over the following three years.

PAG’s funding is subject to customary conditions, including Rex’s shareholder approval, which the airline intends to seek at its annual general meeting in early January.

The funding is also subject to approval from the Foreign Investment Review Board and other required regulatory authorities.

Upon completion, PAG will be entitled to nominate two directors to the Rex board.

Rex’s executive chairman Lim Kim Hai: “PAG is a well-respected and highly successful investment group which manages more than US$40 billion on behalf of major global institutional investors.

“I look forward to tapping into the experience and expertise of PAG’s nominated directors whose professionalism I have grown to respect over the last few months of extensive discussions.

“Preparations for our domestic operations are proceeding to plan, with our first Boeing 737 800NG aircraft delivered on 5 November 2020. Our crew will carry out training on the aircraft over the next three weeks before the CASA-proving flight on 2 December 2020.

“We anticipate CASA approval shortly after. Five other similar aircraft will be delivered from next month to March 2021.

“We will debut on the Sydney-Melbourne route with three aircraft on 1 March 2021 and will ramp up to five aircraft by Easter that will see flights to other capital cities.

“Once the initial services are well established, we aim to progressively grow our fleet to cover all the major cities in Australia.”

PAG chairman and CEO Weijian Shan said the investment firm was impressed with Rex’s track record in Australia’s regional aviation sector.

“Rex’s plan to provide Australia’s major cities with affordable and high-quality air travel is consistent with their disciplined and focused approach over the past 18 years,” he said.

“PAG is excited to partner with Rex on this expansion.”


SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Destinations

Tasmania reveals reopening date to Australia’s mainland

The Apple Isle is getting ready to throw open its borders, which is sure to have mainlanders throwing their hands up in the air and yelling ‘yahoo!’

Share

CommentComments

Aviation

International carriers set Aussie return dates, as Qantas brings forward overseas restart for Melbourne

The increased clarity around border openings as Australia’s vaccinated population grows has given overseas airlines the opportunity to set return dates, with a spate promising to return earlier than expected.

Share

CommentComments

Destinations

WATCH: Destination NSW launches spectacular ‘Feel New’ campaign

Featuring some very flash TV spots, the campaign highlights the state’s natural and cultural offerings, and it’s pretty bloody captivating.

Share

CommentComments

Hotels

Intrepid to open “hybrid hotels” across Australia and NZ through new joint venture

Intrepid has taken its first step into the hospitality market with the promise of some pretty snazzy hybrid hotels. Wondering what the heck a hybrid hotel is? Find out here.

Share

CommentComments

Destinations

Austria: Where culture meets scenery

Whether your clients are eager to get their culture fix, strap on their hiking boots or race down the slopes, in Austria, they can get it all.

Share

CommentComments

Travel Agents

Helloworld’s revenue and TTV soar during September quarter

For full transparency, some of these financial figures are unaudited, but let’s not let that take away from Helloworld’s strong recovery.

Share

CommentComments

Destinations

ScoMo says Australia-Singapore travel bubble to form “within the next week or so”

Our editor is loving this bubble talk so much that he’s decided to celebrate by having a bubble bath while enjoying a bubble tea.

Share

CommentComments

Aviation

Qantas to launch Sydney-Dehli route, moves start date forward for select overseas flights

The national carrier also said it plans to bring back around 11,000 stood-down workers a whopping six months earlier than expected.

Share

CommentComments

Cruise

Golden Horizon, the world’s biggest sailing ship, cancels its Aussie debut

Tradewind Voyages is the latest cruise line to axe its Aussie sailings after growing tired of waiting for the federal government to get its sh*t together.

Share

CommentComments

Wholesalers

Flight Centre-owned DMC Discova recruits new global marketing manager

The destination management company has Discova-d its new global marketing manager. Get it? (Sorry, that was a pretty cringeworthy effort).

Share

CommentComments

Destinations

Four must-dos in Flanders

With charming cities, a rich history and artistic masterpieces (not to mention an unparalleled beer culture), there’s a lot to love about the northern Belgium region.

Share

CommentComments

Destinations

WA lets slip plan to mandate COVID-19 jabs for all interstate travellers

Mark McGowan has been forced to do a bit of explaining after WA’s health department appeared to accidentally release details of its mandatory vaccine plan for all interstate visitors.

Share

CommentComments