REGIONAL airline Rex could move to fill any void left by Virgin Australia and expand into flights between capital cities.
Rex, which has in recent times operated flights from Mildura to Melbourne, Adelaide and Broken Hill, told investors on Wednesday “several parties” had expressed an interest in funding the expansion.
The airline said adding new flights would require an estimated equity injection of $200 million.
“At this juncture the Rex board believes that with sufficient capital injection, there is a confluence of circumstances which render the start of (major market) domestic operations by Rex to be a particularly compelling proposition,” a statement to the ASX said.
Shares in the airline rose in response to the news.
Rex said a decision on whether to move on the plans was expected to be made in the next eight weeks, with a potential start date for new flights of March 1 next year.
Virgin Australia, which was flying daily between Mildura and Melbourne, entered voluntary administration last month.
A report in The Australian said 19 bidders were in the “data room” exploring the possibility of buying Virgin.
First-round indicative offers were due to administrator Deloitte on Friday.
Multiple reports suggested Deloitte was pushing bidders to maintain international routes, arguing it would make the airline more profitable.
Some bidders were reportedly looking to reduce Virgin’s focus to Australian domestic flights.
Mildura Airport flights had dropped from 47 per week before the COVID-19 pandemic to just five, airport chair Peter O’Donnell told Sunraysia Daily last week.
Airport revenue was said to be down to 5 per cent of normal levels.
Mr O’Donnell said it was “hard to judge” whether Mildura would still be serviced by three airlines after the crisis.
