Rex Acquires Air Link
Wednesday, 30 November 2005

Within a month of its successful listing on the ASX, Regional Express Holdings Limited (Rex), today announced the acquisition of the Dubbo based regional / commuter airline Air Link.

Under the agreement, all Air Link shares will be transferred to Rex for 100% ownership of the Company’s activities including its fleet of nine aircraft.

Air Link’s Managing Director, David Miller, has been appointed CEO
and the current management and staff of Air Link will be retained. Air Link will continue to operate as a separate entity as part of the Rex group.

In a joint announcement, Rex’s Managing Director, Geoff Breust said the acquisition of Air Link made much sense enabling the joined entities to work closely together to maximise market penetration and geographic spread.

“There are many synergies between the two airlines which we can use to benefit both companies. We can now join together to provide services covering both networks as well as using our combined resources to further build regular services to regional communities and charter services for Government and business,” Mr Breust said.

“Rex and Air link combined will operate up to seven return services
daily on the Dubbo – Sydney route providing a high degree of choice and flexibility. Fares will be consistent between both carriers.”

“Air Link is a long established operator with the highest reputation for quality service and we welcome Air Link to the Rex Team as a major partner.”

Air Link’s Managing Director, David Miller, said the joining with Rex
provided many advantages to not only the airline but also the
communities served on the Air Link network.

“Immediately we will be able to offer additional schedule options and gain the benefits of combined activities at airports and in the
reservations systems.

“Our Dubbo and western NSW communities will continue to have the schedule of services Air Link has worked hard to establish over the last three years. Air Link’s Dubbo home base will remain and our commitment to the city and the feeder services to the north – west of the State and Mudgee remain our priority,” Mr Miller said.

Mr Miller and Mr Breust commented that Air Link’s connection with Rex goes back to the days before the collapse of Ansett when Air Link operated a successful partnership with Hazelton Airlines providing essential air services to the region.

“This is a renewal of a very successful partnership which had operated for many years. The new arrangement will enable us to build on that success even further,” Mr Miller said.

Air Link, owned by David and Barbara Miller, was established in 1971 as an aircraft charter operation based in Dubbo. In 1991 it commenced regular services linking the NSW regional towns of Bourke, Cobar, Coonamble, Walgett and Lightning Ridge to Dubbo and with Hazelton’s services to Sydney.

Mudgee – Sydney services were subsequently added to the network
and in 2003, Air Link commenced flying Dubbo – Sydney providing its own link for its western ports. Air Link’s current fleet comprises nine aircraft, a Beech B1900D, five Piper Navajo Chieftains and three Cessna 310 aircraft.

Its Head Office is at Dubbo Airport where it also has aircraft engineering and maintenance facilities. The Miller family will retain facilities used by Air Link at Dubbo Airport.

Rex (Regional Express) formed with the amalgamation of Hazelton and Kendell Airlines in 2002, is Australia’s largest independent regional airline operating services on 33 routes in New South Wales, Victoria, Tasmania and South Australia with a fleet of 29 aircraft. Regional Express Holdings Limited was recently listed on the ASX and also recently purchased Pel – Air, an overnight air freight and passenger charter operation based in Sydney.

Media contact: 0402 438 361 – Sara–Jane Uden