Business

Asian Firm May Fund Rex to Compete With Qantas and Virgin

Regional Express (Rex) is one step closer to servicing Australias lucrative “golden triangle” market after signing a deal with an Asian firm for $150 million to launch its major city jet operations starting in March 2021.

Rex and PAG Asia Capital (PAG) are in advanced negotiations that could see PAG own 23 percent of Rexs shares if the initial $50 million draw down is converted in December this year, and 48 percent if the total $150 million is drawn down and converted to shares.

The deal is pending PAG due diligence and shareholders and regulatory approval by the Foreign Investment Review Board who are required to review all foreign investment to determine its strategic risks to Australias national interests.

Lim Kim Hai, Rexs executive chairman, said: “PAG is a well-respected and highly successful investment group which manages more than US$40 billion on behalf of major global institutional investors. I am encouraged by the progress of Rexs negotiations to date with an investor of PAGs reputation and experience.”

Hai said he is confident Rex will successfully launch its domestic city jet operations with PAGs support.

“As a well-established carrier with an impeccable track record, I am confident that Rex will deliver to Australians an alternative major city domestic service that is safe, reliable and affordable. Rexs affordable fares will support Australias economic rebuild and recovery efforts,” Hai said.

Rex is Australias largest independent regional airline. During the COVID-19 pandemic, the airline moved quickly to take over routes abandoned by the two debt-laden national carriers, Qantas and Virgin, as they struggled to survive amid travel restrictions and border closures.

Epoch Times Photo
An aerial view of Rex Airlines aircraft at Sydney Airport on April 22, 2020 in Sydney, Australia. (Ryan Pierse/Getty Images)

John Sharp, Rexs deputy chairman, told ABC Radio on Sept. 16: “Its unfortunate, but economics plays the ultimate judge in these things and if a towns big enough to warrant an air service Rex is willing to provide it.”

Sharp said Rex was Read More – Source