Regional Express has taken delivery of its first Boeing 737 as it prepares to shake up the domestic air travel market.
The Boeing 737-800 touched down in Sydney and will be wearing the airline's livery by the end of the month.
It's one of six 737s leased by Rex, which currently flies to Griffith with Saab 340 turboprop aircraft.
The 737s will be used to fly between Sydney and Melbourne from March 1, and to Brisbane fro Easter.
"Rex has an 18-year track record of leading on time performance and affordable fares in its regional services and for the first time the domestic market can look forward to a safe, reliable air service that is affordable," Rex's deputy chairman John Sharp said.
"If our services prove successful, we will inject up to 10 aircraft into the domestic market by the end of 2021," Mr Sharp said.
"From there, we intend to develop a full domestic airline network, linking all the capital cities over time."
A proving flight for the Civil Aviation and Safety Authority is set for December 5.