Regional Express : Rex Welcomes Final Authorisation by ACCC to Collaborate on Regional Routes

14 SEPTEMBER 2020

MEDIA RELEASE

REX WELCOMES FINAL AUTHORISATION BY ACCC TO COLLABORATE ON

REGIONAL ROUTES

Regional Express (Rex) welcomes the decision by the Australian Competition and Consumer Commission (ACCC) on 11 September 2020 to grant authorisation to Rex to collaborate with Qantas (QantasLink) and Virgin Australia on ten regional routes until 30 June 2021.

The 10 regional routes covered under the authorisation are:

• Sydney - Wagga Wagga
• Sydney - Dubbo
• Sydney - Albury
• Sydney - Armidale
• Melbourne - Mildura
• Adelaide - Port Lincoln
• Adelaide - Whyalla
• Adelaide - Kangaroo Island
• Cairns - Townsville
• Townsville - Mount Isa

On 23 March 2020, Rex applied to the ACCC for interim authorisation to collaborate with the other major regional carriers on ten regional routes they compete on. The application for interim authorisation was lodged a week after the pandemic first severely impacted Australian aviation.

Rex Deputy Chair, the Hon John Sharp AM said, "Rex would like to pay tribute to the ACCC for the pivotal role it has played in helping various industries cope with the devastating effect of the pandemic. The ACCC worked tirelessly to finalise this interim authorisation for Rex in a record-breaking four days so that Rex could legally collaborate on frequencies and revenue with Qantas and Virgin Australia in an effort to stave off imminent collapse".

"Rex has made a commitment to the ACCC not to take advantage of the collaboration to increase prices and Rex has honoured this pledge, not only on the ten competitive routes, but right across its vast network of almost 60 destinations. Rex's network wide average fare today is some 15% lower than the corresponding period last year."

"Rex has not managed to establish any collaboration with QantasLink, however we will not cease to persevere to look for efficiencies so that rural and remote regional communities will continue to benefit from the essential air links that Rex brings to all states in Australia."

Regional Express (Rex) is Australia's largest independent regional airline operating a fleet of 60 Saab 340 aircraft (pre-COVID) on some 1,500 weekly flights to 59 destinations throughout all states in Australia. In addition to the regional airline Rex, the Rex Group comprises wholly owned subsidiaries Pel-AirAviation (air freight, aeromedical and charter operator) and the two pilot academies Australian Airline Pilot Academy in Wagga Wagga and Ballarat.

Rex Media Contact: Corporate Communications: [phone] [e-mail]