The regional airline Rex has ignited a price war with Qantas and Virgin Australia on the lucrative Sydney-Melbourne route with the launch of ultra-cheap fares today.

To celebrate the start of Rex’s new Sydney-Melbourne route on 1 March, the airline is offering business class fares for just $199 and economy fares at $49 throughout March. The fares must be booked by the end of February.

Rex Deputy Chairman, the Hon John Sharp AM, said, “Most taxi rides to the airport cost more than $49. This is a wonderful opportunity for travellers to get between Australia’s two biggest cities on a whim to get over the COVID blues.”

“Importantly, all fares during this pandemic are covered by Rex’s COVID refund policy, which guarantees full refunds for any flights affected by COVID, even if Rex’s flights are not affected.”

The $49 fares include free 23 kg check-in and 7 kg carry-on baggage and refreshments on board, but not seat selection, which requires paying a small fee.

All business class fares come with lounge access, onboard wi-fi, and food and drinks, which includes a “meal box” and alcoholic beverages.

Rex, which already operates 1,500 weekly flights to 59 destinations around the country, is seeking to expand its network to connect capital cities with a fleet of Boeing 737s purchased from Virgin Australia.

The first three Boeing 737 aircraft will be used to operate nine Sydney-Melbourne return services a day from 1 March. By Easter, two additional 737s will be added to expand the domestic network to Brisbane and, eventually, other capital cities. The airline hopes to grow its 737 fleet to 8-10 aircraft by the end of 2021.

Rex’s ex-Virgin 737 business class

Rex is also expected to launch a revamped frequent flyer program soon.

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