Rex Airways ups the ante on Qantas in fly-in-fly-out market

Rex Airways has finalised its acquisition of fly-in-fly-out operator Nationwide Jet Categorical (NJE), the regional arm of Cobham Aviation, for $48 million whereas Qantas’ takeover of FIFO rival Alliance Australia awaits watchdog approval.

Rex Airways government chairman Lim Kim Hai indicated the corporate supposed to overhaul Alliance Australia as Australia’s main FIFO operator via “daring plans to develop and rework” NJE.

Rex Airways has accomplished its acquisition of fly-in-fly-out operator Nationwide Jet Categorical.Credit score:Sam D’Agostino

“Useful resource corporations throughout Australia can now rely on a contemporary, comfy and environmentally pleasant fleet for his or her FIFO wants as an alternative of counting on 30-year-old Fokker 100 plane used predominantly by the opposite operators,” mentioned Lim.

Rex Airways will lease two new plane so as to add to its fleet and indicated it’s seeking to broaden into Queensland and the Northern Territory particularly.

“We are going to proceed to put money into new plane and know-how to develop the enterprise, particularly in Queensland the place useful resource corporations have been going through extreme points with capability and reliability in recent times,” Lim mentioned.

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In the meantime, Qantas’ $614 million proposed acquisition of Alliance Australia has been on maintain for months after the Australian Competitors and Client Fee (ACCC) expressed preliminary issues about decreased competitors.

“We’re involved that this proposed acquisition is more likely to considerably reduce competitors for air transport companies to and from regional and distant areas in Queensland and Western Australia for company clients,” mentioned ACCC chair Gina Cass-Gottlieb mentioned in mid-August.

The ACCC gave Rex the inexperienced mild for its buy of NJE lower than two weeks after the preliminary announcement.

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