THE airline monopoly on the Canberra-Sydney route could be under threat for the first time in more than 12 months when a second carrier looks to claim a share of the market after introducing budget fares.

Rex Airlines announced on Wednesday that with a “war chest” of $150 million, funded by private equity, the regional company that acquired Hazelton and Kendell airlines in 2002 was going head-to-head with Qantas to slash travellers’ costs on the shortest city journey.

“We will not be deterred in our goal of bringing safe reliable air services at affordable fares to all major cities in Australia,” Rex Deputy chairman John Sharp said.

“We believe that on the Sydney-Canberra route alone, Rex will be bringing annual savings of between $60-$100 million to commuters when numbers return to pre-covid levels such is the level of fare gouging being practised.”

Mr Sharp accuses Qantas of routinely charging one-way fares of “close to $1,000 for this short sector”.

The bold claim comes after Rex plans to sell one-way tickets from $99 beginning with its maiden flight on April 19.

Qantas has responded in the price war, slashing flexible fares that costs upwards of $600 each to between $145 and $192 every day until at least July.

Rex will initially commence with seven daily flights that could exceed 10 trips both ways.

Mr Sharp believed that strong patronage will “end the monopoly”.

Virgin Australia have not returned to the runways of Canberra since the global pandemic rocked the airline industry, publicly claiming the 235km distance was not economical.

Sydney Seaplanes have since threatened to fly passengers to Canberra daily for close to $300 one way that would avoid the airports on a path between Lake Burley Griffin and a Rose Bay site off Sydney Harbour.

“At a time when many small businesses and households are still struggling to make ends meet, our fares will make a world of difference to the community,” Mr Sharp said.

The new Sydney-Canberra flights will go on sale from later this week.