Regional Express shareholders have approved a $150 million investment deal that will fund the airline's new national passenger jet service in exchange for selling nearly half of the company.
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The airline said the money would be "used exclusively to support the launch and operation" of its new Boeing 737 services between Australia's capital cities.
"This is the final major step in REX's preparation for launching domestic services to all the major cities," Rex deputy chairman John Sharp said.
"It's a historic moment for REX and for Australian aviation, providing Australians for the first time a premium reliable service at affordable fares."
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REX was formed in 2002 via a merger of Wagga-based Kendell Airlines with Hazelton Airlines in the Central West, with the airline running a pilot academy at Wagga's airport.
As a result of a motion carried at the Regional Express (REX) annual general meeting on Friday, Hong Kong-based PAG was granted a 23.3 per cent shareholding in exchange for $50 million.
PAG will increase its REX shareholding to 47.6 per cent over the next three years for another $100 million and will be able to nominate for two positions on REX's board.