REX looking at taking over VA flying
Originally Posted by
BNEA320
so my 2 cents .....
QF & VA had way too many staff getting paid too much, BUT QF had larger share of corporate market, who pay top dollar.
You only had to look around at airports, with many well paid staff, standing around doing stuff all between flights.
New QF will have less staff probably being paid less or paid same but with more required (not saying necessarily pilots will work more hours).
New VA, if it gets up (can the administrators stuff it up ? Looks possible) will have a huge haircut in terms of staff & pay & conditions, otherwise a totally new airline will pick up either B737 or A320 aircraft leases for a song & pay nothing like QF/VA have in the past.
A new airline will only have to fly trunk routes more frequently than JQ & have cheaper fares than QF. Govts might have to subsidise non-trunk routes or JQ will fly them at higher fares, which will hurt tourism industry recovery in the regions.
Plenty of experienced ex VA & other airline staff, who would work for a lot less than they were getting, as have mortgages etc.
A new airline might start slowly, hiring only as needed, but in this new world, they could probably start with 6-8 aircraft or less, doing triangle only to offer a schedule better than JQ. Remember JQ will never fly frequently on the golden triangle or will be competing with QF.
What did Virgin Blue start with ? 2 x ex AN B734s wasn't it ? BNE/SYD only ?
Seem to be plenty of venture capitalists around with plenty of cash to fund it. Wouldn't be surprised if some of pay of any new airline was either shares or % of profit.
The ABC are reporting this morning that REX want to take over the VA domestic flying. All they want is $200m to kick it off. The analysis was that SQ are lurking in the background (Tamasek) and it’s been in the pipes for a while.