Logo

Rex to Acquire 25 Latest Generation Saab 340B plus Aircraft
Thursday, September 28, 2006

Regional Express (Rex), the largest independent regional airline in Australia, will embark on a massive fleet modernisation and expansion programme involving the long term lease of 25 advanced 34 seat Saab 340B plus aircraft which will be supplied by Saab Aircraft Leasing over the next three years.

The Saab 340B plus aircraft features a redesigned extended wing which increases take off and climb performance providing increased payload of passengers and freight from many of Rex’s regional destinations. Passenger comfort is also greatly enhanced with the cabin equipped with a state-of-the-art active noise cancelling system, larger stow away overhead compartments and modern interiors and lighting. The aircraft also has a larger baggage/cargo hold.

Rex Managing Director Geoff Breust said that the 25 aircraft would be introduced into service from January 2007 and would enable the airline to meet the strong demand from regional Australia as well as embark on its fleet rejuvenation plan.

Commenting on the deal, Mr Breust said, “This programme will enable us to meet the numerous requests from regional Australia for quality air services.These aircraft present Rex with the opportunity to undertake a bold commitment to expanding our services to regional Australia.”

“At the same time this transaction allows us to fulfill our plans for fleet rejuvenation as these Saab340B plus aircraft have a useful life of at least 20 years. Additionally we have been able to negotiate, because of the size of the transaction, a significant reduction in lease rates over what we are currently paying for our existing leases.”

Morgan Falkengren, Saab Aircraft Leasing Vice President Asia-Pacific states, "We are very proud to be a partner to Regional Express, one of the most successful regional airlines in the world. We are very pleased to assist Rex upgrade its fleet to the latest Saab 340B plus which is the ultimate refinement with unbeatable operating economics on regional routes. The consistent profitability of Rex demonstrates that the Saab 340 is very well suited for today's demanding regional airline operations. The selection of Saab 340B plus will assist Rex in maintaining that momentum."

Rex Executive Chairman, Lim Kim Hai, said that he was extremely satisfied with the performance of the Saab 340 which he described as the ideal turboprop aircraft for today’s regional airline environment.

“Its low operating cost and fuel efficient engines have enabled Rex to become one of the world’s most profitable airlines,” Mr Lim said.

Rex is Australia’s largest independent regional airline. It operates services linking regional destinations to Sydney, Melbourne and Adelaide and carries over 1.2 million passengers annually on over 1,200 flights each week. Regional Express Holdings Limited listed on the ASX in November 2005, owns 100 percent of Dubbo based regional airline, Air Link and has a 50 percent investment in freight and charter operator, Pel-Air Aviation Pty Limited.

Saab Aircraft Leasing manages a portfolio of about 200 Saab 340 and Saab 2000 aircraft leased to 25 airlines around the world. With 35 employees, its head-office is in Washington, DC and regional offices in Stockholm Sweden and Tokyo Japan. Saab is one of the world’s leading high-technology companies, with its main operations focusing on defence, aviation and space. The group covers a broad spectrum of competence and capabilities in systems integration.