Regional Express: Australian regional airfares higher due to inherent market dynamics

    Regional Express (Rex), via a submission to the Australian Senate Rural and Regional Affairs and Transport References Committee, stated the market dynamics of regional routes lead to “extremely high inefficiencies with load factors typically in the 55%-60% range”, resulting in higher airfares (The North West Star, 24-Jul-2018). The carrier added that “contrary to popular folklore, competition in regional aviation can be particularly detrimental for all the smaller routes of less than 100,000 passengers a year”.