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A new airline is coming to Canberra Airport, expanding the options for travellers within Australia and threatening a price battle with Qantas. Rex said it would run seven flights a day between Canberra and Sydney from April 19, at fares starting at $99 one way. Depending on demand, the seven daily flights into Canberra could expand to 10. At the moment, Qantas has a monopoly on the Sydney-Canberra route so a competitor may bring prices down. Rex deputy chairman John Sharp said his company’s new service would act against “fare-gouging”. He didn’t mention Qantas by name but it’s the only airline flying between Canberra and Sydney at the moment. Virgin flew the route before the epidemic but hasn’t returned. “We believe that on the Sydney-Canberra route alone Rex will be bringing annual savings of between $60 and $100 million to commuters when numbers return to pre-COVID levels, such is the level of fare gouging being practised,” he said. “At a time when many small businesses and households are still struggling to make ends meet, our fares will make a world of difference to the community that routinely sees one-way fares close to $1,000 for this short sector.” Qantas also flies to other state capitals from Canberra. Virgin flies to Melbourne, Brisbane, Gold Coast and Adelaide. Two other recent newcomers – Pelican and Link – fly, between them, to Hobart, Port Macquarie and Newcastle. Rex calculates the demand between Canberra and Sydney is big enough for it to make money on the route. It said that before the epidemic, a million passengers a year flew it. And it thinks it’s nimble enough and efficient enough to give Qantas a run for its money. READ MORE: Rex has been raising money and is aggressive in its competition. “Rex has a war chest of $150 million funded by private equity for domestic services and we will not be deterred in our goal of bringing safe reliable air services at affordable fares to all major cities in Australia,” the company executive said. The airline said it was grateful to Canberra Airport and the ACT government for their help in establishing the new service. ACT Chief Minister Andrew Barr said: “The investment Rex is making is a vote of confidence in this city and we are delighted to be working closely with the airline and Canberra Airport through Visit Canberra to widely promote the new services and contribute to the growth of the route.” Canberra Airport’s chief executive Stephen Byron, said, “This new Canberra-Sydney route will offer more choice for our travellers, stimulate jobs and grow the air travel market which is a win-win for us all.” Rex will have a lounge at Canberra airport, Rex is Australia’s largest of the smaller regional and domestic airlines. It operates a fleet of 60 Saab 340 and four Boeing 737-800NG aircraft to 62 destinations throughout all states in Australia.

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