Country-based airline Regional Express looks set to add significant fuel to its growth ambitions after signing a letter of intent to enter a "definitive commercial arrangement" with giant international carrier Delta Air Lines.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The deal means passengers flying with either airline will be able to book seamless connections on each other's flights.
By September Rex and US-based Delta will introduce reciprocal interline ticketing and baggage services, and reciprocal frequent flyer credits are also likely as part of the arrangement.
Aviation industry observers are tipping the partnership will lead to a full-scale joint venture arrangement between the Atlanta headquartered Delta and Rex resulting in the junior Australian eventually joining a major airline alliance.
IN OTHER NEWS:
The 97-year-old Delta is one of the world's biggest and oldest airlines, flying almost 900 planes on any one day.
"Delta will not only connect international travellers on Rex's trunk domestic routes, but could also allow them easy access to Rex's expansive network of over 60 routes throughout regional Australia," said Rex deputy chairman, John Sharp.
Rex's passengers would be able to connect seamlessly on Delta's daily, non-stop flights between Sydney and Los Angeles, and from there to nearly 50 US cities.
Rex, which has been servicing regional Australia since it emerged from the ashes of the Ansett Airlines collapse in 2002, launched into capital city routes last year, acquiring six Boeing 737-800 jets to complement its turboprop fleet of 60 Saab 340 aircraft.
It is Australia's largest regional carrier, headquartered at Wagga Wagga in southern NSW and servicing about 62 airports across all states.
Singapore-based chairman and major shareholder, Lim Kim Hai, recently noted the regional airline group may add six to 10 extra aircraft annually to its capital city services to improve its economies of scale.
Milestone move
His deputy, Mr Sharp described the Delta plan as a new milestone moment for Rex.
"We are delighted to forge a partnership with America's most awarded airline, which will help boost the post-COVID return of long-haul international travel."
Delta's alliance partner development vice-president, Jeff Arinder, said Rex would be a valued partner, bringing additional connectivity and geographic reach to both airlines.
"We look forward to welcoming more customers to our flights from Sydney to the US and providing a world-class customer experience in the air and on the ground."
Delta has operated a similar partnership with Virgin Australia, but that has been winding down since December and ends in June.
Aside from expanding its passenger services between metropolitan cities such as Sydney, Melbourne, Gold Coast, Adelaide and Canberra, Rex Group's existing regional activities include a freight, passenger charter and aeromedical division, Pel-Air Aviation, and the Australian Airline Pilot Academy in at Wagga Wagga and Ballarat in Victoria.