Rex is primarily a turboprop operator, but last year it diversified its business by launching narrowbody jet operations on Australia’s major trunk routes.
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Aerocivil rejected the proposed deal earlier in November, saying that the tie-up would damage competition and create a monopoly on 16 domestic services.
Rolls-Royce and program partner airline EasyJet have conducted test runs on a AE2100 turboprop powered by liquid hydrogen rather than conventional jet fuel.
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