Originally Posted by
CargoOne
There is nothing odd. To start with, stop mixing up Australian and US dollars. AUD 30m is just USD 20m. Second, Saab340B/B+ in serviceable condition depending of the engine status is valued in between 1,2 to 2,0m USD. Thirdly it is not that much Saab airplanes valued as collateral but rather a chance to loan to someone with a strong record (save for covid).
Can you provide some evidence for those values you quote. Mate flying regional jets reckons F100 / Bae are only worth around the 1m mark, so how does a 34 seater, which is around the same vintage come anywhere near the 2m USD mark?
Re the bolded sentence. It's a sell / lease back isn't it? So buy a/c with limited market demand and get their return via lease costs. You'd want a high return to justify the risk. The "lendee" then uses that money to enter a highly competitive RPT environment against established players; what could go wrong! I also think that the argument about the flow on from Rex's regional services is way overstated. Not saying it won't work, but it will be bloody difficult to pull off. I'd put my money on Bain & QF, not Rex. Not saying it will fold, just doubt it'll be that successful.