Rex says its new frequent flyer program will be up and running by the third quarter of this year, in time for the launch of a new interline agreement with Delta Air Lines.

Once it finally launches, Rex Flyer is set to offer frequent flyer points and access to lounges for frequent flyers in Sydney, Melbourne, Adelaide, Canberra and Brisbane.

Rex Flyer points would likely be redeemable for Rex flights, as well as flights on Delta Air Lines if the regional airline’s new partnership with Delta takes shape as Rex Deputy Chairman John Sharp has indicated.

It’s possible that Rex could also offer opportunities to earn and redeem points on the ground through its Rex Flyer program, as is the case with most other profitable global frequent flyer programs. While no partners have yet been announced, a tie-up with IGA supermarkets could be one logical choice for the independent regional airline.

The details are yet to be revealed, but Rex’s new loyalty program has been in the works for over a year. The development is being led by Rex’s Director of Marketing and Loyalty.

Rex’s new interline agreement with Delta

Rex announced on Monday that it has signed a “letter of intent” with Delta Air Lines to commence an interline agreement in the third quarter of this year, i.e. by September 2022 at the latest. Delta is currently a partner of Virgin Australia, but this agreement will end next month as Virgin switches its US loyalty partner to United Airlines.

Rex Deputy Chairman John Sharp told Bloomberg that this agreement would mean Rex customers have access to preferential rates with Delta. He also said that Rex’s new loyalty program would link with Delta SkyMiles, allowing Rex’s frequent flyers to access Delta lounges in the United States and to earn & redeem points for Delta flights.

For this to be possible, the new partnership between Rex and Delta would need to be more than just a basic interline agreement. By definition, an interline agreement merely allows passengers to seamlessly connect between airlines, with boarding passes issued and bags checked through to the final destination, on a single ticket.

An interline agreement alone is the lowest basic level of cooperation between airlines and doesn’t automatically mean customers can access reciprocal frequent flyer benefits. But once Rex launches its loyalty program, this could pave the way for a deeper level of cooperation between the two airlines – something that would be mutually beneficial. For now, we’ll have to wait to see the full details of this partnership as Rex hasn’t confirmed many of the details yet.

Delta already has interline agreements with 126 airlines including Qantas, Virgin Australia, Air New Zealand… and even Kazakhstan’s national carrier, Air Astana.

Rex Business Flyer suspended

Prior to launching domestic jet services in March 2021, Rex offered a paid loyalty program for businesses called Rex Business Flyer. This program offered two free flights for every 18 Saver or Flex fares purchased – a simple yet compelling proposition not unlike a coffee “stamp card”. However, applications for Rex Business Flyer have now been suspended for over a year.

Rex added a “Loyalty Program” menu to its website last year with references to “Rex Flyer”. But these menu options are greyed out and the pages don’t yet exist on Rex’s website.

Rex has taken a long time to launch a frequent flyer program

For an airline trying desperately to compete with established airlines like Qantas and Virgin Australia, it’s astonishing that Rex has taken so long to launch a frequent flyer program.

In many ways, Rex offers a decent domestic service. Its fares are competitive and include checked baggage, a snack and a drink on board. The Rex cabin crew are also excellent, and the airline offers wi-fi on board its Boeing 737 flights for a small fee.

But without a loyalty program and lounges that are at least on-par with the Qantas Club or Virgin Australia Lounges, many frequent flyers simply won’t consider Rex. This is particularly the case when Virgin Australia has been matching Rex’s airfares on many routes. With access to comprehensive benefits through the Velocity Frequent Flyer program and superior airport lounges, many people have been choosing to fly Virgin instead of Rex when the prices are similar.

If Rex is serious about attracting frequent flyers, it needs to prioritise the launch of its loyalty program.

If done right, frequent flyer programs can also be highly profitable for airlines – especially if partnerships are established with third parties like credit card providers and the loyalty proposition is compelling for members. Qantas Frequent Flyer, for example, consistently makes more profit than Qantas’ core airline business.

John Sharp told Bloomberg this week that with access to an overseas network on Delta, airport lounges and a new loyalty program, Rex would soon be offering domestic customers “the full suite of services they’re looking for.”

Join the discussion on the Australian Frequent Flyer forum: Rex to launch its own frequent flyer program (2022 launch)

Matt Graham

The editor of Australian Frequent Flyer, Matt's passion for travel has taken him to over 90 countries… with the help of frequent flyer points, of course!
Matt's favourite destinations (so far) are Germany, Brazil & Kazakhstan. His interests include economics, aviation & foreign languages, and he has a soft spot for good food and red wine.

You can connect with Matt by posting on the Australian Frequent Flyer community forum and tagging @AFF Editor.