Rex signs contract for Esperance, Albany service

Regional Express (Rex) says it has signed contracts with the West Australian government to operate the Perth-Esperance and Perth-Albany routes.

The airline, which was named as the prefered tenderer for the two government-regulated routes in November, will replace Virgin Australia Regional Airlines (VARA) on the two services.

”Rex has today entered into a Deed with the WA Department of Transport to operate these two routes for a five-year licence period commencing 28 February 2016,” Rex said in a statement to the Australian Securities Exchange on Tuesday.

“Rex will release flight schedules and further details in the coming days.”

VARA’s last flights to Albany and Esperance, which it serves with 46-seat Fokker 50s, will be on February 27 2016.

Virgin Australia chief executive John Borghetti said those flights were losing money.

“The losses, frankly were just too big,” Borghetti told reporters in Perth on November 13.

“We just couldn’t find a way to make it work.”

The airline is removing all eight of its Fokker 50s from the fleet.