REX Airlines has announced it will begin a Canberra to Melbourne service, twice a day, from June 10.

Promising economy fares from $69 one-way, the airline says their prices are $123 cheaper than the lowest affair available in Canberra throughout May.

The Canberra-Melbourne service on a Boeing 737-800NG jet will bring 200,000 annual seats to the route and will keep other airlines honest, says Rex deputy chairman John Sharp. 

“Qantas has perfected the art of price gouging, ripping off passengers with sky-high fares on a route with only a weak competitor to keep it honest,” he says. 

More than a million people travel between the two capital cities each year pre-covid and return flights on Qantas can cost more than $900, he says. 

A return Qantas flight this Queen’s Birthday long weekend costs as much as $928.28, he says.  

“This will now change with Rex’s entry. We are sure that both Qantas and Virgin Australia will immediately match our fares as they have done every time,” Mr Sharp says.

The ACT government welcomes the Rex Airlines’ investment in the Canberra-Melbourne route, with ACT Chief Minister Andrew Barr saying it’s a major boost to competition on one of the city’s busiest aviation routes.

“It will make it easier, and significantly cheaper, for people to visit Canberra,” he says.