Regional airline Rex using downturn to challenge Qantas, Virgin

Big gamble: A file picture showing a Rex SAAB 340 plane being sprayed with water as its sets off for its first flight from Canberra in 2002. The move by Rex is a rare example of an airline expanding into new markets as the pandemic cripples air travel. — Reuters

SYDNEY: As Virgin Australia shrinks to survive the pandemic, tiny Regional Express Holdings Ltd (Rex) is picking up some of its larger rival’s planes and staff on the cheap –and attracting investors who see profit in the high-stakes plan.

A Boeing Co 737 leasing deal announced on Wednesday is the latest step in Rex’s gamble to take on Qantas Airways Ltd and Virgin starting with Sydney-Melbourne, the world’s fifth-busiest domestic route before the pandemic.