Rex mulls $200m raise to establish interstate flight paths

Rex mulls $200m raise to establish interstate flight paths

Regional flight operator Rex (ASX: REX) is considering raising $200 million in order to establish domestic Australian operations.

The new flight paths will be run in addition to its regional services which are being underwritten by the Federal Government and some state governments.

In response to an article ran by the Financial Review yesterday, Rex today has announced it is considering the feasibility of commencing domestic airline operations to compete with Virgin Australia (ASX: VAH) (currently in administration) and Qantas (ASX: QAN).

Rex says it has been approached by several parties interested in providing around $200 million worth of equity required to start domestic operations in Australia.

A decision on whether or not to proceed with the raise will be made within the next eight weeks.

"At this juncture the Rex Board believes that with sufficient capital injection, there is a confluence of circumstances which render the start of domestic operations by Rex to be a particularly compelling proposition," says Rex.

As reported by the AFR Rex would lease around 10 narrow-body jets, and will hire pilots, cabin crew, and ground staff to operate them in order to facilitate the new domestic flights.

Rex entered into a trading halt yesterday morning following pending the release of this morning's announcement and following the publication of the AFR article.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

How communications technology can raise the bar on customer service, employee experience
Partner Content
From capturing feedback early to providing messages with a higher rate of cut-through, ...
Advertisement

Related Stories

Australian motoring clubs acquire largest public EV charger network Chargefox

Australian motoring clubs acquire largest public EV charger network Chargefox

Australia’s largest EV charging network Chargefox, which has ...

Victorian regulators hit Crown with fresh disciplinary proceedings over gambling services

Victorian regulators hit Crown with fresh disciplinary proceedings over gambling services

Two months after the Victorian Gambling and Casino Control Commissi...

SEEK Investments commits $20m to casual staffing platform Sidekicker

SEEK Investments commits $20m to casual staffing platform Sidekicker

Casual and temporary staffing platform Sidekicker has secured $20 m...

Burgertory bites into franchise market after acquiring New York Minute chain

Burgertory bites into franchise market after acquiring New York Minute chain

Independent gourmet burger chain Burgertory has acquired fellow Mel...