Regional Express Leases New Saabs in Revamp
By Steve Creedy, The Australian | Sep. 29, 2006
Regional Express (also known as Rex) is to acquire 25 34-seat Saab A340B Plus aircraft in an ambitious fleet modernisation program which will also allow it to expand its network.
Because of the size of the long-term leasing deal, Australia's biggest independent regional carrier will be able to replace older aircraft in its 31-strong fleet with the newer version Saabs at reduced rates.
It comes as Rex is predicting growth of about 10 per cent this financial year as it continues a strong turnaround that generated a 141 per cent increase in 2005-06 net profit.
Rex managing director Geoff Breust said that the 25 aircraft would be introduced into service over three years from January.
He said they would allow the airline to phase out its Saab 340As. At least one will be converted into a freighter, replacing older 340Bs.
"But also part of this gives us the opportunity to expand the network, either through putting more services on the routes we currently fly but also taking up opportunities on new routes," Mr Breust said.
"But we'll only expand where it makes good commercial sense."
The former American Eagle planes are being leased from Saab, with eight arriving in the first year, nine in the second and eight in the third.
They feature a redesigned extended wing which increases take-off and climb performance, providing an increased payload.
Passenger comfort will also be improved with an active noise cancelling system, larger overhead lockers and modern interiors and lighting.
Mr Breust said the operating leases would run from six to seven years.
Rex executive chairman Lim Kim Hai said the Saab 340 was the ideal regional airline turboprop.