REGIONAL Express (REX) have announced they have been granted permission to collaborate with QantasLink on the Sydney to Dubbo route following a final decision by the Australian Competition Consumer Commission.
However, they are not yet collaborating with QantasLink on the local route.
During it's determination the ACCC said it didn't expect Rex to engage in the collaboration before funding for the REgional Airline Network Support (RANS) ran out later this year.
The ACCC said the funding arrangements have enabled the airlines to manage the short-term reduction in passenger demand on the relevant routes without the need to coordinate and/or share revenue.
The Sydney to Dubbo route is one of 10 across the county where REX allowed collaborate with Qantas Link and Virgin Australia.
The announcement comes after REX applied to the ACCC for interim authorisation to collaborate with the other major regional carriers back in Mach.
The application for the collaboration was lodged a week after the pandemic first impacted Australian aviation.
REX Deputy chair John Sharp AM said Rex has made a commitment to the ACCC not to take advantage of the collaboration to increase prices.
"Rex has honoured this pledge, not only on the ten competitive routes, but right across its vast network of almost 60 destinations. Rex's network wide average fare today is some 15% lower than the corresponding period last year," he said.
"Rex has not managed to establish any collaboration with QantasLink, however we will not cease to persevere to look for efficiencies so that rural and remote regional communities will continue to benefit from the essential air links that Rex brings to all states in Australia."
Mr Sharp said Rex wanted to pay tribute to the ACCC for the role it had played in helping industries cope with the effects of the pandemic.
"The ACCC worked tirelessly to finalise this interim authorisation for Rex in a record-breaking four days so that Rex could legally collaborate on frequencies and revenue with Qantas and Virgin Australia in an effort to stave off imminent collapse".
The 10 regional routes covered under the authorisation are:
- Sydney - Dubbo
- Sydney - Wagga Wagga
- Sydney - Albury
- Sydney - Armidale
- Melbourne - Mildura
- Adelaide - Port Lincoln
- Adelaide - Whyalla
- Adelaide - Kangaroo Island
- Cairns - Townsville
- Townsville - Mount Isa
We depend on subscription revenue to support our journalism. If you are able, please subscribe here. If you are already a subscriber, thank you for your support.