Peter Rex and Jim Davis Founded Rex in 2002

Regional Express (Rex) was founded in August 2002 by aviation entrepreneurs Peter Rex and Jim Davis. They established Rex from the merger of Hazelton Airlines and Kendell Airlines after the collapse of Australian airline Ansett.

Peter Rex brought decades of experience founding and leading aviation companies to his role as Rex‘s inaugural Chairman. Jim Davis was an experienced airline executive who became Rex‘s first CEO. Together, they created and led Rex in its formative early years.

In this article, we‘ll explore the history of Rex Airlines and how it became Australia‘s largest independent regional carrier under the guidance of its founders and subsequent leaders.

Rex Emerges from Ansett‘s Collapse

Rex Airlines was born out of the ashes of the Ansett Australia group, which collapsed in September 2001. Ansett‘s failure left a gap in air services to regional Australia.

Peter Rex and Jim Davis seized this opportunity to found Rex by acquiring two of Ansett‘s former regional airlines:

• Hazelton Airlines – one of Australia‘s oldest airlines, founded in 1953. Hazelton operated regional flights in New South Wales, Victoria and Tasmania.

• Kendell Airlines – a regional airline formed in 1967. Kendell served destinations across New South Wales, Queensland and South Australia.

After a complex merger process, Rex Airlines took flight on August 31, 2002. Rex combined the regional networks and aviation experience of Hazelton and Kendell under a new brand.

Rex‘s Founders – Peter Rex and Jim Davis

Peter Rex

Peter Rex brought a strong background in aviation entrepreneurship to his role as Rex‘s founding Chairman. Since the 1980s, he had started and led various airlines including Airtex Aviation, Airtex Lanka and Hazelton Airlines.

Rex remains a Chairman and major shareholder of Regional Express Holdings, the parent company of Rex Airlines.

Jim Davis

As Rex‘s inaugural Chief Executive Officer, Jim Davis drew on his extensive experience as a senior executive at major airlines:

• 1983-2001 – Held senior management positions at Ansett Australia including General Manager of Ansett Express Regional Airlines.

• 2001-2002 – Following Ansett‘s collapse, led the Kendell Airlines business during its transition to Rex.

• 2002-2005 – Served as Rex‘s first CEO during the airline‘s crucial formative years. Oversaw Rex‘s initial growth into Australia‘s largest regional carrier.

Under Davis‘ leadership, Rex transported over 1 million passengers in its first full year of operation. The airline also recorded a profit in 2003 – a major achievement for a start-up carrier.

Expanding Across Regional Australia: 2002-Today

Since its inception in 2002, Rex has progressively grown its regional network to become Australia‘s largest independent regional airline.

Rex‘s network in the early years

When Rex commenced flights on August 31, 2002, the airline had:

• 15 Saab 340 aircraft
• 250 employees
• Flights to 16 destinations in 4 states

By August 2003, Rex served 21 regional airports across New South Wales, Victoria, Tasmania and South Australia.

Growth milestones

• In 2004, Rex carried over 1 million passengers annually for the first time.

• The airline‘s fleet reached 30 Saab 340 aircraft in 2009, serving 38 destinations.

• In 2013, Rex transported 2 million passengers in a single year.

• By 2019, Rex operated up to 1,500 weekly flights to 58 destinations across 5 states.

Expanding into domestic jet flights

In March 2021, Rex launched Australia-wide jet operations with Boeing 737-800 aircraft:

• Initially flying between Sydney-Melbourne and Sydney-Brisbane.

• Now operating jet flights on all major southeast routes competing with Qantas and Virgin Australia.

• Plans to expand its jet fleet from 6 to 10 Boeing 737s during 2023.

Rex‘s network today

As of March 2023, Rex operates:

• Regional network: Over 1,500 weekly flights to 60 destinations across all Australian states except Western Australia, using a fleet of 60 Saab 340 aircraft.

• Domestic jet network: 130 weekly flights between major cities like Sydney, Melbourne, Brisbane and the Gold Coast using 6 Boeing 737 jets.

After two decades, Rex has cemented itself as one of Australia‘s vital airlines. It fills a key role providing regional air connectivity and increased domestic competition.

Leadership After the Founding CEO

While founders Peter Rex and Jim Davis established Rex in 2002, subsequent leaders guided the airline through further expansion.

Neville Howell

Rex‘s second Chief Executive Officer from 2005-2018. Key achievements:

• Oversaw Rex‘s growth into Australia‘s largest regional carrier.

• Improved workforce culture and industrial relations.

• Upgraded technology systems and implemented a website booking system.

• Boosted Rex‘s automation, productivity and safety record.

Warrick Lodge

Current Rex CEO since 2018. Background with Qantas and leadership of Rex‘s move into domestic jet operations.

• Launched jet services between major southeast cities to compete with Qantas and Virgin Australia.

• Plans further expansion of Rex‘s Boeing 737 fleet to 10 aircraft during 2023.

• Passionate focus on maintaining Rex‘s excellent reputation for safety, reliability and service.

Rex‘s Winning Business Strategy

Rex has carved out a lucrative niche in Australia‘s airline market by tailoring its business strategy to the needs of regional air travel.

Laser focus on regional and underserved routes

Rex predominantly flies regional routes which are overlooked by its larger airline rivals Qantas and Virgin Australia. This provides a vital air service and generates profits without direct competition.

Full-service offering

On both its regional turboprop and domestic jet flights, Rex positions itself as a full-service airline:

• Fares are inclusive of checked baggage, snacks and beverages.

• Passengers enjoy superior legroom and onboard service compared to low-cost carriers.

Efficiency of a single aircraft type fleet

Rex exclusively operates Saab 340 turboprops on regional routes. This single aircraft type generates cost and operational efficiencies for the airline.

‘On Time Guarantee‘

If a Rex flight is delayed by over 15 minutes, passengers receive a voucher redeemable for a future Rex flight. This guarantee provides confidence in the airline‘s punctuality.

Boutique, premium offering

Rex markets itself as a high-quality boutique airline. It offers a refined, full-service alternative to the major carriers in both regional and domestic jet markets.

The Importance of Rex in Australia‘s Aviation Market

Rex has played an integral role in Australia‘s airline industry since its inception. Some of its key contributions include:

• Filling the regional service gap left by Ansett‘s collapse and the major airlines. Rex provides essential air connectivity across rural and regional areas.

• Stimulating competition by expanding into major domestic jet routes, competing with Qantas and Virgin Australia. This applies downward pressure on fares.

• Maintaining excellent safety standards, with a fatality-free 19 year history. Rex complies with the strictest Australian aviation regulations.

• Providing a boutique, full-service alternative to low-cost carriers and the major airlines. Championing high service standards on regional and domestic routes.

• Linking regional communities and facilitating economic growth through affordable, reliable air links.

After 20 successful years, Rex remains essential to Australia‘s transport network. It looks set to continue growing and providing an independent alternative to the aviation duopoly of Qantas and Virgin Australia.

Conclusion

Rex Airlines was founded in 2002 by experienced aviation identities Peter Rex and Jim Davis. They capitalized on the collapse of Ansett Australia to establish Rex from two of Ansett‘s former regional carriers.

From humble beginnings with 15 aircraft and 250 staff, Rex has flourished into Australia‘s largest independent regional airline under stable leadership. It operates over 1,500 weekly flights, provides a vital community service and stimulates increased domestic competition.

Rex‘s co-founders built the foundations for its success. Their vision has been fulfilled through an astute strategy focused on regional markets, efficiency, service quality and maintaining Rex‘s unique identity. Two decades later, Rex is one of Australia‘s aviation success stories – and a crucial part of the nation‘s air transport landscape.