A Downunder fare war has erupted with upstart REX flexing its wings with $49 fares on one of the world's busiest routes from Sydney to Melbourne. That deal has been immediately matched by Virgin Australia, which says it has “raised the bar even higher - matching some of the lowest airfares in the market - complete with checked-baggage, seat selection, double Velocity Points on eligible bookings and of course, our award-winning service.”

A Virgin spokesperson explained it was looking at new ways to get people back into the skies.

“We were the first Australian airline to introduce COVID-19 booking flexibility, have put more than 2 million seats on sale in the last week, and rolled out an informative health and wellbeing series on our social media channels to ensure travelers are comfortable when they next fly,” the spokesperson said in a statement to Channel 7.

REX said its $49 fare was to celebrate the launch of its domestic jet services between Sydney and Melbourne, on March 1st. READ: Qatar Airways is the world's favorite airline. The airline also has a special business class fares for the route of just $199. The special REX fares are available for flights between Sydney and Melbourne in March and must be booked by the end of February. Rex Deputy Chairman, the Hon John Sharp AM, said, “Most taxi rides to the airport cost more than $49. This is a wonderful opportunity for travellers to get between Australia’s two biggest cities on a whim to get over the COVID blues.” “Importantly, all fares during this pandemic are covered by Rex’s COVID refund policy, which guarantees full refunds for any flights affected by COVID, even if Rex’s flights are not affected.” The $49 fares include free 23 kg check-in and 7 kg carry-on baggage and refreshments on board. All passengers on March 1 flights will receive a commemorative certificate and a gift pack. Rex’s Sydney to Melbourne services commence March 1. Queensland will be added to the Rex domestic network after Easter. The launch fare is available on rex.com.au and is subject to conditions outlined on the website. Rex is Australia’s largest and oldest independent regional and domestic airline, with its history dating back to 1953 with the formation of Hazelton Airlines, which together with Kendell Airlines were the component airlines of Rex.