Rex Airlines – Australia’s largest regional airline outside the Qantas group – is expanding its Fly-in, Fly-out chartered flight service to the Northern Territory.

“The company will invest in modern aircraft and technology to enable NJE to expand from its traditional bases of WA and SA and bring our unique brand of FIFO services also to Queensland and Northern Territory,” Rex’s executive chairman Lim Kim Hai said.

Rex, however, did not say if the airline will provide regular passenger services, nor if it will set up a hub in the Territory.

The airline announced the expansion of its planned services in the Territory after it had acquired 100 per cent of National Jet Express Pty Ltd (NJE) – the regional services arm of Cobham Aviation Services Australia – for $48 million.

NJE is Western Australia and South Australia’s leading provider of FIFO services. It also operates freight services from Sydney to Adelaide, Brisbane, Melbourne and the Gold Coast, and charter services in Papua New Guinea.

Mr Hai said NJE’s modern aircraft fleet and its long-term customer relationships overlaid with Rex’s proven record of safety, reliability of service, and cost efficiencies would propel NJE to be the premier FIFO operator in Australia.

Rex will expand into the FIFO business as it provides more predictable revenues than the carrier’s regular commercial flights.

“We see the mining industry as one which has shown great resilience in recent years and one that has a great opportunity for growth,” Rex deputy chairman John Sharp said. “The regular public transport market, we’ve seen that fluctuate dramatically from time to time, whereas this is a more stable revenue base.”

Rex already operates a small FIFO service through its wholly-owned subsidiary Pel-Air which accounts for less than one per cent of the market. NJE, on the other hand, held 10 to 15 per cent of the market share before the sale.

While the new combined business still pales compared to Virgin’s 10 per cent share and Quanta’s 40 per cent – which will grow to 60 per cent if competition regulators approve its buyout of Alliance Aviation – smaller FIFO operators are expected to be affected by Rex’s purchase of NJE.

Capiteq Pty Limited, commonly known as Airnorth, which offers both scheduled and charter passenger flights, would face stiffer competition with Rex’s buyout of NJE.

Airnorth, based at Darwin International Airport, currently holds the majority of the FIFO market in the Territory. It operates in the Northern Territory, Queensland, Victoria, Western Australia, and East Timor.