Regional Express board approves plans to raise USD20m for domestic operations

29 June, 2020

Regional Express (Rex) stated (29-Jun-2020) it has engaged in confidential exploratory discussions with various parties to assess the availability of funding for starting up domestic operations. The Rex board has formed the view that Rex could successfully embark on domestic operations, and has approved an initiative to raise a minimum of AUD30 million (USD20.6 million), which the board believes will be what is needed for the launch of limited domestic operations, through one or more of either sale and lease back arrangement, equity injection and convertible notes. Discussions with interested parties including lessors and private equity funds have not been finalised. Due to the strong interest shown by various external parties to participate in the fund raising, including lessors willing to provide AUD30 million for 15 of Rex's fleet of 60 unencumbered Saab 340 aircraft, the Board has now formed the view that funding will be forthcoming for the minimum target sought. Consequently the Board has authorised management to commence preparations in earnest for the operation of an initial fleet of five to ten narrowbody jet aircraft to be based out of Sydney and/or Melbourne to service Sydney-Melbourne-Brisbane. The board confirmed 01-Mar-2021 as the targeted start date for domestic operation. [more - original PR]