“You have to face a giant to become one.”
― Johnnie Dent Jr.
REX Airlines, Australia’s largest independent regional and domestic airline, is making good on its promise to challenge Qantas, Virgin and Jetstar head-on, with Aviator as their wingman. From 1 March 2021, travellers will finally have a high quality, reliable and affordable airline to fly between Australia’s major capital cities….and that’s just for a start.
What makes this bold move from REX Airlines even more significant, is that they will offer fare prices comparable to Jetstar, but with inflight service and inclusions more along the lines of Qantas and Virgin Australia. REX will offer all the usual benefits of a full-service carrier meaning all their fares include checked baggage allowance, food, pre-assigned seating and online check-in.
I guess one can say that for the first time passengers don’t have to choose between low fares with minimal service and premium pricing for more reliable flights when flying Australia’s ‘golden triangle’.
Undoubtedly, the big question every Airline Revenue Management professional reading this article would ask is: “Just how would they manage to achieve this?”
Well, REX fully understands the three pillars driving Airline profitability, i.e. costs, yield and seat factor. REX’s expansionary mindset will see them lowering their cost-base by capitalising on the newly available airport slots, infrastructure and skilled aviation workers as well as low fuel and aircraft prices.
REX will also utilise their Aviator Revenue Management system to ensure an optimum mix between yield and seat factor to maximised revenues on every flight. Aviator Revenue Management enables REX to forecast passenger demand for these new routes using user-defined historical data and flights and set business rules for the powerful auto-optimisation process.
To echo the words of REX’s Deputy Chairman, Hon John Sharp AM: “Finally, Australians can look forward to not only a safe, reliable and affordable airline but one they can count on for the long term”.
REX’s Airlines origins date back almost 70 years, making it Australia’s second oldest surviving carrier. It operates a fleet of 60 Saab 340 aircraft (pre-COVID) on 1,500 weekly flights to 59 destinations throughout all states in Australia. In addition to the airline REX, the REX Group comprises wholly-owned subsidiaries Pel-Air Aviation (air freight, aeromedical and charter operator) and the two pilot academies Australian Airline Pilot Academy in Wagga Wagga and Ballarat.
