On Thursday the Hong-Kong based PAG Asia Capital formally agreed to hand over $150 million to Rex, which will be spending the money on expanding its services throughout Australia.

Once the deal has received the green light from the existing shareholders in January, PAG will appoint two of its own members onto Rex's board of directors.

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The Sydney to Melbourne route will be debuted on March 1, 2021, with more fleets gradually added to their schedule over the coming years.

Rex executive chairman Lim Kim Hai said the company would benefit from the funding and expertise of its new Asian partners.

"PAG is a well-respected and highly successful investment group which manages more than USD 40 billion on behalf of major global institutional investors," Mr Hai said.

"I look forward to tapping into the experience and expertise of PAG's nominated directors whose professionalism I have grown to respect over the last few months of extensive discussions."

PAG chairman and CEO Weijian Shan said he was "excited" to partner up with Rex on its expansion.

"We have been impressed with Rex's established track record in regional aviation in Australia," Mr Shan said.

"Rex's plan to provide Australia's major cities with affordable and high-quality air travel is consistent with their disciplined and focused approach over the past 18 years."

Rex has already acquired a new Boeing 737 800NG this month, and over the next three weeks their flight crew will be training with the aircraft in the lead-up to its first test-run on December 2.

Rex said they plan to acquire another five aircraft, with the next one coming in December and the other four to be delivered by March 2021.

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