Rex Affirms Its Fare Policy
Wednesday, 12 October 2005

Regional Express (Rex) announces that it stands by and is proud of its policy of bringing affordable and reasonable fares to regional centres as it dismisses accusations by Leigh O’Connor of O’Connor Airlines suggesting it is predatory pricing.

“Our record speaks for itself. Our fare structure is similar right across our entire network of 33 routes regardless of whether we are in competition or not. In fact, we have had the greatest success in stimulating air travel (70% in three years) on those routes where we are sole operator through an aggressive fare policy,” said Mr Geoff Breust the Managing Director of Rex.

“Our cheapest normally available discount fare for travel on Rex services from Mount Gambier to both Adelaide and Melbourne is $109 inclusive of all taxes and charges. That is also the same fare Portland residents pay for travel to Melbourne Airport where we have no direct competition.

“Our average fare today across the entire network is $122 inclusive of a $22 fuel levy. We are still 20% lower in average fare than when we started three years ago even with the fuel levy thrown in,” Mr Breust said.

Mr Breust explained that Rex had been merciless in its efforts to reduce cost and eliminate wastages and was able to pass on these savings to regional air travellers. Mr Breust invited Mr O’Connor to emulate the efforts of other smaller regional airlines in NSW, which have been able to gain market share and grow their markets even under severe competition from both Rex and Qantaslink.

The table below sets out the cheapest Rex fares available through reservations through its web site.

Rex also markets special discount fares at various times of the year such as during the January holiday period. For the forthcoming period, Rex has advertised fares from $99 on its services from Mount Gambier to Melbourne and Adelaide. At the same time it has advertised fares of $99 on Sydney – Armidale, Sydney – Cooma, Sydney – Wagga Wagga, $89 for Adelaide – Port Lincoln, $85 for Melbourne – Albury and $79 for Adelaide – Whyalla. Mr Breust said these fare levels where successful in generating travel at these quiet times for the airline and have been part of the airlines’ strategy for a number of years.

“Rex has always advertised its fares at the fully inclusive rate – inclusive of all taxes, and charges including GST and the fuel surcharge,” Mr Breust said.

Rex is currently in the offer period of its Initial Public Offer for a listing on the ASX. It is holding a special presentation on the Offer in Mount Gambier on Friday, 14 October.

Lead-in fares for Rex network
Sydney - Albury $132
Sydney - Armidale $111
Sydney - Broken Hill $209
Sydney - Bathurst $89
Sydney - Ballina $109
Sydney - Cooma $129
Sydney - Dubbo $122
Dubbo - Broken Hill $187
Sydney - Griffith $99
Sydney - Lismore $109
Sydney - Merimbula $119
Sydney - Mildura $179
Sydney - Moruya $119
Sydney - Narrandera $99
Narrandera - Mildura $99
Sydney - Orange $123
Sydney - Parkes $99
Sydney - Wagga Wagga $112
Sydney - West Wyalong $99
Melbourne - Albury $93
Melbourne - Burnie $109
Melbourne - King Island $109
Melbourne - Mount Gambier $109
Melbourne - Merimbula $119
Melbourne - Mildura $122
Melbourne - Moruya $149
Melbourne - Portland $109
Melbourne - Wagga Wagga $119
Adelaide - Broken Hill $148
Adelaide - Ceduna $148
Adelaide - Coober Pedy $177
Adelaide - Kingscote $63
Adelaide - Mount Gambier $109
Adelaide - Olympic Dam $159
Adelaide - Port Lincoln $93
Adelaide - Whyalla $87