New flights between Canberra and Sydney could benefit the ACT economy by nearly $200 million per year, new analysis suggests.
The Urbis study commissioned by Rex Airlines estimated the new daily route would provide a direct annual economic boost of $191 million.
It could also support up to 300 new jobs in the capital.
Rex Airlines will operate seven return flights per day between the cities with the first Saab 340 service set to touch down in Canberra this morning.
The regional airline's entry into the Canberra market will add 160,000 seats per year along the Sydney-Canberra route, boasting fares from $99 one-way.
Rex deputy chairman John Sharp said the airline would create much-needed competition and entice more travellers to the capital.
"Rex's entry to the Canberra airline market will add 300 jobs here and it will generate economic activity of nearly $200 million just because our competitive pricing will put a stop to Qantas's gouging of passengers with very high prices," Mr Sharp said.
"So this is good for local employment, for tourism and all the attractions in the region and I thank the ACT Government and Canberra Airport for helping to achieve such a great outcome."
One-way fares on the new service cost from $99.
Rex offers a full refund for passengers who need to cancel a flight for reasons related to COVID-19.
Qantas previously denied it was price gouging and said it would be competitive on the route. Its fares start from $193 one-way.
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