Rex - Regional Express (ZL, Wagga Wagga) shareholders have "overwhelmingly" approved a proposed AUD150 million Australian dollar (USD115 million) investment deal with PAG Regulus Holdings Pte Ltd.
"This is the final major step in Rex's preparation for launching domestic services to all the major cities," Deputy Chairman Ron Sharp said in a statement.
The investment will be exclusively earmarked to fund Rex's upcoming expansion into the domestic trunk route market using its first narrowbody jets. The first tranche of AUD50 million (USD38.2 million) will be disbursed to the carrier by mid-February.
Rex is planning to launch its first B737 route, from Sydney Kingsford Smith to Melbourne Tullamarine, on March 1, 2021, with more services to follow shortly thereafter. The carrier has so far inducted two B737-800s, although it said it has already signed lease agreements for a total of six of the type.
Rex's new business model will complement, rather than replace, its existing network of regional Australian RTP services operated with a total of fifty-seven Saab 340A, Saab 340Bs, and S340B(Plus)es.
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