Airline Regional Express has chosen the planes it will use to challenge Qantas between the big capital cities and hopes to start selling tickets by December.
Regional Express (Rex) said it had signed letters of intent with two lessors for the lease of six Boeing 737-800 NG planes.
The first 737 would be delivered on November 1 and the rest would be phased in over the following four months, Rex said.
"Three of these aircraft will be deployed in the first phase of our launch on March 1, 2021, on the Sydney-Melbourne route, with another two aircraft beginning service before Easter," deputy chairman John Sharp said.
"From there, Rex will continue to grow the domestic fleet in line with the return of passenger demand and hopes to see its fleet of 737-800 NGs reach 10 by year end.
"The signing of these letters marks another significant milestone for our entry into the domestic jet market.
"Our preparations are progressing very well and on schedule and we hope to obtain regulatory approval by December.
"Advanced ticket sales are also envisaged for December, subject to regulatory approval."
Investment firm PAG Asia Capital is expected to invest up to $150 million to completely fund the Rex flights between the capitals.
PAG would hold about 48 per cent of Rex's issued shares if the full $150 million was drawn down.
Rex has foreshadowed flights between Melbourne, Sydney and Brisbane, in addition to its extensive regional network.
The airline is best known in Tasmania for operating on the Burnie-Melbourne route.
Like other airlines, it was hit hard by the coronavirus crisis, travel restrictions and a huge slump in passenger numbers.
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It recorded a $19.4 million after tax loss for 2019-20.
"Talking about the future, it must appear strange to some that Rex is announcing bold plans to start domestic jet operations in March 2021 when it was on the brink of collapse just five months ago," executive chairman Lim Kim Hai said in the company's annual report.
"Indeed, Rex is probably the only carrier in the world making plans, with the help of external funding, to increase substantially its operations."
Mr Lim said the board had not made the decision lightly.
"While this is a significant increase in our scale of operations and the risks are considerable, the Rex board believes that we are probably one of the best run, efficient and profitable airlines in the world and, with our extensive infrastructure already in place, the extension to jet operations will not be a difficult step," Mr Lim said.
Sean Ford
The Advocate Newspaper, Tasmania. Business, economics, politics, crime.
The Advocate Newspaper, Tasmania. Business, economics, politics, crime.
