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Rex challenges Qantas’ “fare gouging”


Rex today announced plans to fly between Sydney and Canberra as part of bid to bring “affordable fares to all major cities in Australia”.

 

“Rex has a war chest of $150 million funded by private equity for domestic services and we will not be deterred in our goal,” Rex deputy chairman John Sharp said.

 

The airline plans to begin flights between Canberra and Sydney from April 19 next month with fares from $99 one way.

 

Rex will initially commence with seven return flights a day and could exceed 10 returns a day if the patronage is good. 

 

“At a time when many small businesses and households are still struggling to make ends meet, our fares will make a world of difference to the community that routinely sees one-way fares close to $1,000 for this short sector,” Rex deputy chairman John Sharp said.

 

“We believe that on the Sydney – Canberra route alone Rex will be bringing annual savings of between $60 - $100 million to commuters when numbers return to pre-COVID levels, such is the level of fare gouging being practised.”

 

Rex’s entry will “see the end of the monopoly” on the route that pre-COVID had more than one million passengers and is now solely flown by Qantas since Virgin exited the market. 

 

Sharp said that introductions of affordable fares should stimulate both business and leisure travel/

 

Rex will have a lounge at Canberra airport, complementing the airline’s existing lounge in Sydney which will give way to a new, much larger lounge opposite Gate 49 in the coming months.

 

The new Sydney-Canberra flights are on sale from later this week.

 
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Published: 24 March 2021


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