Regional Express in trading halt as airline plans new city services with Boeing or Airbus jets

The airline has cut back services, including at Wagga, and is relying on government financial aid during the coronavirus pandemic, but now reportedly wants to compete on national air routes.

The Australian Securities Exchange announced just after 11am on Tuesday that Regional Express had requested the halt pending an announcement.

The Australian Financial Review reported overnight that Regional Express planned to sell more shares to pay for the lease of 10 narrow-bodied jets such as Boeing 737s or Airbus A320s.

Regional Express currently runs prop-driven planes between areas like Wagga and major cities.

The airline's new venture would see it compete with Qantas, Jetstar and whatever remains of post-collapse Virgin Australia for routes between Sydney, Melbourne, Brisbane, Adelaide and Perth.

Regional Express deputy chairman John Sharp told The Australian Financial Review that the airline would also seek to hire new pilots, cabin crew and ground staff.

"We have been talking to half a dozen private equity and investment banking entities about investing in this new venture," he said.

"We are working with those parties and will narrow that down to one in the next three weeks or so."

If Regional Express can raise the required funds from investors, its new city service could reportedly take to the skies from early next year.

The Daily Advertiser has contacted Regional Express for comment about what its plans might mean for Wagga passengers and the airline's pilot training centre at Wagga airport.

Regional Express was trading at 90 cents per share prior to the trading halt, valuing the entire company at just over $99 million.

Regional Express is currently maintaining a handful of weekly return flights between Wagga and Melbourne and Sydney because of financial assistance from the federal government.

The airline cut back its Wagga flights during the coronavirus pandemic and had said it was facing closure without external help.

Qantas also cut its weekly Wagga services by half in response to the crisis.

Regional Express was formed in 2002 via a merger of Wagga-based Kendell Airlines with Hazelton Airlines in the Central West.