- Regional Express Holdings (REX) will receive up to $150 million from investment firm PAG Regulus for the company’s domestic launch
- The regional airline announced it will move to the domestic market in June this year
- REX will receive $50 million in January, with the remaining funding available over the next three years
- The first flight will be from Sydney to Melbourne on March 1, 2021, with five planes expected to be flying by Easter to other capital cities
- On market close, REX is up 5.07 per cent and is trading for $1.56 per share
Regional Express Holdings (REX) will receive up to $150 million from investment firm PAG Regulus for the company’s domestic launch.
The investment includes first ranking senior convertible notes, with an initial funding tranche of $50 million to be drawn down towards early January. The remaining funding will be made available over the next three years.
The funding will need shareholder approval, which will be sought at the next annual general meeting in early 2021.
In June, the regional airline announced it was ready to take on the big guns, Qantas and Virgin, as it planned to enter the domestic market. Initially, Rex plans to fly along the east coast between Sydney, Brisbane and Melbourne.
Its domestic operations will be priced at affordable prices and will include baggage allowance, meals on board and pre-assigned seating.
In September, the company locked in six Boeing 737-800 Next Generation (NG) aircraft from two lenders.
Executive Chairman Lim Kim Hai said its domestic launch is on schedule as it received the first Boeing plane earlier this month.
“Our crew will carry out training on the aircraft over the next three weeks before the Civil Aviation Safety Authority (CASA) proving flight on December 2, 2020,” he said.
“We anticipate CASA approval shortly after. Five other similar aircraft will be delivered from next month to March 2021,” he added.
The first flight will be from Sydney to Melbourne on March 1, 2021, with five planes expected to be flying by Easter to other capital cities.
On market close, REX is up 5.07 per cent and is trading for $1.56 per share.