Regional airline, Rex, is vowing to continue its fight against ‘price gouging’ in the Canberra market as it prepares to launch a new direct route between Melbourne and the Nation’s Capital.

The new twice-daily service will begin from 10 June, offering $69 flights one-way.

The low priced flight is cheaper than the current cost of a Greyhound Bus between the two cities.

Rex Deputy Chairman, John Sharp, said the airline’s arrival on the route is set to save Canberrans millions of dollars in overpriced tickets.

“We are sure that both Qantas and Virgin Australia will immediately match our fares as they have done every time.”

“We estimate that Rex’s entry will save Canberrans over $150 million a year in lower fares once travel returns to pre-COVID levels.”

Chief Minister, Andrew Barr has welcomed the opportunity for cheaper travel, hopeful it will come as a boost for interstate visitor numbers to the ACT.

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“It is a further vote of confidence in Canberra’s tourism and hospitality industry and today’s announcement will be welcomed by both leisure and business travellers.”

The route to Melbourne comes after Rex, launched a new direct route to Sydney last month.

Canberra Airport CEO, Stephen Byron said Tuesday’s announcement is another vote of confidence in the Canberra market for the airline.

“This announcement cements Rex’s commitment to Canberra and the region, now servicing our two biggest markets – Sydney and Melbourne, and provides choice and a tremendous opportunity for the people of Canberra and Melbourne.”

It’s estimated more than a million people travel between the two cities each year.