SYDNEY (Reuters) – As Virgin Australia shrinks to survive the pandemic, tiny Regional Express Holdings Ltd (Rex)

is picking up some of its larger rival’s planes and staff on the cheap – and attracting investors who see profit in the high-stakes plan.

A Boeing Co

737 leasing deal announced on Wednesday is the latest step in Rex’s gamble to take on Qantas Airways Ltd

and Virgin starting with Sydney-Melbourne, the world’s fifth-busiest domestic route before the pandemic.

The move by Rex, until now an operator of ageing 30-36 seat turboprops, is a rare example of an airline expanding into new markets as the pandemic cripples air travel.

Shares in Rex and charter operator Alliance Aviation Services Ltd

have risen this year as investors look for counter-cyclical growth stories. Rex’s shares reached a one-year high on Thursday.

Graphic – Regional carriersĀ Regional Express and Alliance Aviation are outperforming larger peers as they undertake counter-cyclical expansion plans: https://fingfx.thomsonreuters.com/gfx/ce/bdwvkkyqqvm/AustraliaRegionalAviation.png

Rex entered the pandemic with a licence, little debt, a paid-off fleet and no planes on order. Last week it signed a term sheet with Asian investment firm PAG Asia Capital for up to A$150 million ($106.23 million) of convertible notes to pay for service to big cities, funds Rex Deputy Chairman John Sharp told Reuters will be kept separate from its government-subsidised regional operations.

But even with those advantages and the ability to sign cut-rate contracts, analysts say Rex faces formidable odds in competing against larger players. Those well-established brands have strong loyalty programmes, more frequent flights and fancier airport lounges, and will scramble to win back share as demand recovers.

“They are really poking the bear here,” Rico Merkert, a professor of transport at the University of Sydney Business School, said of Rex. “Qantas will do everything they can to defend their

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Sep 30, 2020 (Market Insight Reports) —
Selbyville, Delaware Market Study Report, has recently added a report on the ‘Travel Insurance market’ which presents substantial inputs about the market size, market share, regional trends, and profit projection of this business sphere. The report also enlightens users regarding the foremost challenges and existing growth tactics implemented by the leading organizations that constitute the dynamic competitive gamut of this industry.

Request Sample Copy of this report at: https://www.marketstudyreport.com/request-a-sample/2790742/?utm_source=Marketwatch&utm_medium=SHR

Global Travel Insurance Market is valued approximately at USD 15.60 billion in 2019 and is anticipated to grow with a CAGR of 14.44% over the forecast period 2020-2027.

Major market player included in this report are:

  1. Allianz SE (Germany)
  2. Munich Reinsurance America (US)
  3. American Express Company (US)
  4. Travelex Insurance Services (US)
  5. Bajaj Finserv Limited (India)
  6. China Pacific Life Insurance Co., Ltd. (China)
  7. MS&AD Insurance Group Holdings (Japan)
  8. Munich Re Group (Germany)
  9. Ping An Insurance (China)
  10. Prudential Financial, Inc. (US)

The detailed segments and sub-segment of the market are explained below:

By Insurance Cover:

  1. Single Trip Travel Insurance
  2. Annual Multi-Trip Travel Insurance
  3. Long-Stay Travel Insurance
  4. By Distribution Channel:
  5. Insurance Intermediaries
  6. Insurance Company
  7. Bank
  8. Insurance Broker
  9. Insurance Aggregator
  10. Others

By User:

  1. Senior Citizens
  2. Education Traveller
  3. Backpacker
  4. Business Traveller
  5. Family Traveller
  6. Fully independent Traveller

By Region:

  1. North America
  2. S.
  3. Canada
  4. Europe
  5. UK
  6. Germany
  7. Asia Pacific
  8. China
  9. India
  10. Japan
  11. Latin America
  12. Brazil
  13. Mexico
  14. Rest of the World

Tourism accounts a significant share of International Trade services with rise in the number of international tourists worldwide. For Instance: As per data from United Nation World Tourism Organization, in the first half of 2019, 4% rise in the number of international tourists travel worldwide has been noticed. Such tremendous rise in the tourism industry over the years