Summary:
- Interline arrangement with Delta Air Lines offers international connections for Rex.
- Delta Air Lines needs a new Australian partner after the demise of Virgin Australia deal.
- Rex plans to introduce new loyalty programme, and is upgrading its lounge network.
- Seventh 737 being added by Rex, with longer term plans to grow to approximately 30 jets.
- Rex’s jet network is also expanding, and a new Queensland route could be next.
Delta partnership gives Rex the international access it has lacked
Forming links with Delta is a particularly noteworthy step.
Rex signed a letter of intent with Delta on 2-May-2022 to establish reciprocal baggage and ticketing interline services, which are expected to begin in the third quarter.
Rex and Delta will expand their partnership in stages and some steps will require regulatory approval, said Rex Deputy Chairman John Sharp. Rex expects eventually to develop full codesharing with Delta.
This will be Rex’s first interline agreement with an overseas airline. It previously had an interline deal with Virgin Australia, although this ended during Virgin’s restructuring process and when Rex planned to enter the jet market.
The Delta arrangement will allow Rex customers to book international connections via Delta’s daily flights between Sydney and Los Angeles. This is something Qantas can obviously offer both with its own fleet and on its partners’ flights. Virgin Australia has temporarily suspended bookings on its partners’ international flights due to the COVID-19 pandemic, but this capability will return at some point.
As well as giving more options to its Australia-based customers, the interline deal will also feed Delta customers into the Rex network. Mr Sharp noted that a significant proportion of Delta passengers arrive in Sydney and want to connect to other Australian cities served by Rex.
“We’ll be attracting new customers onto our system”, said Mr Sharp. “The ramifications of [the Delta deal] are…