News has emerged ASX travel share Regional Express Holdings Ltd (ASX: REX) sought government support to regulate regional routes.
Regional Express shares are currently trading at $1.07, a 2.88% gain. Meanwhile, the company's larger rival Qantas Airways Limited (ASX: QAN) has seen a 1.4% drop in its share price so far today.
Let's take a look at what is going on in the travel world.
Regulation battle
Regional Express requested help from the New South Wales Government to regulate regional flight routes but was reportedly knocked back, The Australian reported.
Had Regional Express been successful, airlines, including Qantas, would have had to bid via a tender process for these country flight routes.
Commenting on the news, a spokesperson for Regional Express told the publication:
The only airline that enjoys the benefit of regulated routes in NSW is Qantas.
In late May, Regional Express withdrew regional flights routes to Bathurst, Grafton, Lismore, Kangaroo Island, and Ballina.
At the time, Regional Express chair John Sharp blamed the decision on Qantas' "predatory actions". However, Qantas hit back, claiming:
This is just the latest example of Rex blaming Qantas and others for decisions that by its own admission it has made "to look after itself".
In mid-June, Regional Express announced it would increase weekday services to major regional centres including Albury, Broken Hill, Coffs Harbour, Dubbo, Orange, and Port Macquarie, among others.
Qantas has launched more than 40 new regional flight routes since April 2020. Meanwhile, Regional Express has commenced multiple new interstate flights.
ASX travel share price recap
The Qantas share price has gained nearly 1% in the past year, while the Regional Express share price has lost around 11%.
In comparison, the S&P/ASX 200 Index (ASX: XJO) has shed around 8% in the past year.
Qantas has a market capitalisation of $8.6 billion while Regional Express has a market cap of around $116 million.
