Qantas Doesn’t Expect To Have 2 Domestic Competiors After COVID - Simple Flying

“My personal view is that this market has never sustained three airline groups, and it probably won’t into the future.

“You can be guaranteed that Qantas will be one of them. It’s who else is going to be in the market place post this and into the future is going to be interesting.”

Rex is due to start flying Boeing 737s between Sydney and Melbourne in early March. Shortly after, flights between Sydney and Brisbane will begin. As Simple Flying reported yesterday, that start date may be delayed owing to internal border closures.

Before COVID, these were some of the busiest airline routes in the world. Historically, these routes have been tightly held by just a couple of airlines, with some market share crumbs thrown to their low-cost offshoots. With high volumes of business travel on the routes, they usually provide rich revenue streams for the airlines.

Advertisement:

Stay informed: Sign up for our daily aviation news digest.

Qantas-Domestic-Competitors-post-covid-getty
Alan Joyce knows Qantas will survive but isn’t sure about all of his local competitors. Photo: Getty Images

Rex Airlines is taking a risk but stands a decent chance of succeeding

Rex isn’t the first airline to take on the established players on these routes. In the last 20 to 30 years, Impulse Airlines, and OzJet, and both versions of Compass Airlines tried and failed. But Rex has a better chance than most of making their new flights work. They run a lean operation with deep pockets, are an established airline with deep expertise, and have an excellent local feeder network.