Investors in Qantas Airways Limited (ASX: QAN) shares appear unfazed by the airline's latest competition in the 'golden triangle'.
Regional Express Holdings Ltd (ASX: REX) has announced it will soon offer all routes between Australia's 3 largest cities – Melbourne, Sydney, and Brisbane – when it launches flights between the latter two destinations.
It's the second new route Rex has heralded this week after it announced flights between Melbourne and Brisbane on Monday.
At the time of writing, the Qantas share price is trading at $5.60, 0.18% higher than its previous close.
In comparison, the S&P/ASX 200 Index (ASX: XJO) is having a challenging day on the boards, currently down 0.55%.
Let's take a closer look at how Qantas might be affected by today's news from Rex.
Qantas share price lifts despite more competition
The Qantas share price is gaining slightly in trading today despite increased competition for Australia's busiest air travel routes.
From 20 December, Rex will be flying between Australia's prime harbour and river cities, with flights now on sale for just $69.
The news comes days after the regional airline said its entry into new routes generally caused other airlines to lower fares. On Monday, Rex deputy chair, the Honourable John Sharp AM, stated:
Every time we've entered a new market, airfares have fallen dramatically as Qantas and Virgin Australia scramble to match our prices and I have no doubt this will be the case again.
Today, Sharp said Rex's new flight route between Sydney and Brisbane demonstrated the airline's "determination to grow [its] domestic network and provide consumers with safe, reliable and affordable air travel".
Rex will operate 3 flights every weekday between the cities, and 2 daily flights on weekends. Tickets on the newly announced flights include 23kg of check-in luggage, carry-on luggage, and onboard refreshments.
Queensland Tourism Minister Stirling Hinchliffe welcomed Rex's expansion, noting more of Brisbane's visitors flew from Sydney than from any other city.
Additionally, Qantas shareholders might want to keep a tight eye on Rex in the future. Particularly, as it could start to encroach further onto QantasLink's beat.
Rex is planning to establish a Boeing 737-800NG base in Brisbane. Sharp looked to its future as a leisure and regional operator in the sunshine state, commenting:
Brisbane is a key gateway for Rex and will very quickly become the launch pad for further forays into the Queensland market in the months and years ahead.
QantasLink has launched 39 new routes within regional Australia since the COVID-19 pandemic began.
