Regional Express enters deal with PAG Asia Capital investors

Rex is planning to expand into the domestic market off the back of PAG funding
Rex is planning to expand into the domestic market off the back of PAG funding

More connecting flights would open up for Wagga passengers as part of a multimillion-dollar deal being negotiated by Regional Express airlines with Asian investors.

The struggling airline is closing in on a $150 million investment deal with Hong-Kong based company PAG Asia Capital, which would fund Rex's expansion into cities such as Brisbane and Melbourne.

PAG would own 48 per cent of Rex at the end of three years and entitle them to appoint two directors onto its board.

The board has pegged March 1, 2021 as the targeted start date for their expanded flight schedule, including a Sydney to Melbourne to Brisbane service connecting with Wagga.

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Rex executive chairman Lim Kim Hai said negotiations were progressing well, saying it seemed very likely at this stage that expansion would indeed be going ahead as planned.

"With PAG's support, I have every reason to believe that Rex can successfully launch its domestic major city jet operations," he said.

"As a well-established carrier with an impeccable track record, I am confident that Rex will deliver to Australians an alternative major city domestic service."

The last hurdle will be Rex's board of investors, who will need to give the deal the green light when they meet in December.

This story Rex in multi-million dollar talks with Asian investors first appeared on The Daily Advertiser.