Electric planes in Australia seen halving flight costs

Regional Australian airline Rex said operating costs on short flights will drop as much as 50% with the introduction of electric- and hydrogen-powered aircraft in coming years.

Rex plans to start trials in early 2024 using King Air 200 planes, retrofitted with the new power trains, before later tests with Saab 340 aircraft, Deputy Chairman John Sharp said at a conference in Sydney Thursday. 

The expected lower operating costs will open up new routes that aren’t viable with turbine engines, while fares will fall and services will become more frequent, Sharp said. The converted planes will suit short hops of about an hour, such as Sydney-Wagga Wagga, he said.

Rex announced a partnership with drive-train manufacturer Dovetail Electric Aviation in July. Dovetail said at the time it expected to achieve certification for the converted aircraft within four years.

Rex will still use turbine-powered Saab 340s on longer flights.

Shares in the airline, formally listed as Regional Express Holdings Ltd., slipped 1.5% Thursday, taking their decline this year to 6.9%.