Going Over Big Down Under

Rex is an Australian airline based in the city of Sydney in the southeast Australian state of New South Wales. The carrier operates scheduled regional and domestic service across all six of Australia’s states, and is the nation-continent’s largest regional airline outside the Qantas group of companies.

In July 2022, Rex signed an agreement to acquire National Jet Express (NJE), a leading provider of fly-in-fly-out (FIFO) services in Western and South Australia. NJE is the regional service arm of Adelaide’s Cobham Aviation Services (formerly known as National Jet Systems), and operates freight services from Sydney to Adelaide, Brisbane, Melbourne and the Gold Coast, as well as air charter services in Papua New Guinea.

On 30 September 2022, Rex finalized its purchase of National Jet Express, and stated its intention to grow and transform its latest acquisition into Australia’s premier Fly-In-Fly-Out operator. Rex further stated it plans to undertake a  major expansion into Queensland and Australia’s Northern Territory.

Rex executive chairman Lim Kim Hai remarked: “As we now officially complete the purchase, I would like to pay tribute to the sellers, Advent International, which have prepared the sale in the most meticulous and professional way I have ever seen in my life.” Mr. Lim also praised the NJE executives and staff who ran the business successfully over the last two years despite the turbulence caused by the pandemic and the uncertainties by which the modern world is faced.”

“There is no better operator of air services in Australia than the Rex Group, be it for reliability or financial performance,” Mr. Lim continued. “Over the last 14 years for example, when the entire global economy has been shaken to the core by the Global Financial Crisis and COVID-19, Rex has still managed to achieve a positive gross return of 2.9%, compared to Singapore Airlines’ 1.3%, while Qantas showed a disgraceful negative 1.9%. In fact, over the last 18 years, Rex made more absolute accumulated profits than Qantas!"

Mr. Lim concluded: “Rex will overlay this financial and operational prowess on NJE’s core strengths to transform it to be Australia’s premier FIFO operator. Resource companies all over Australia can now count on a modern, comfortable and environmentally-friendly fleet for their FIFO needs instead of relying on 30-year-old Fokker 100 aircraft used predominantly by the other operators.”

Rex’s fleet currently comprises 61 Saab 340 turboprops and seven Boeing 737-800NG narrow-body airliners. In all, the Rex Group encompasses wholly owned subsidiaries Pel-Air Aviation (air freight, aeromedical and charter operator) and two pilot academies in Wagga Wagga, New South Wales and Ballarat, Victoria.

FMI: www.rex.com.au