PPRuNe Forums - View Single Post - REX to transition to ATRs, start domestic jet ops
Old 21st Sep 2020, 12:46
  #268 (permalink)  
MickG0105
 
Join Date: May 2016
Location: Sunshine Coast
Posts: 1,181
Received 208 Likes on 101 Posts
Originally Posted by Section28- BE
Hmmmm-



Just 'a' question- so where, does the 'said' truck with $54M arrive (for free) in all of this 'Accounting'......?????- then, the 'said' $40M of under-written operations......, just 'a' question...????

Do, NOT get Bomby ......, just a question?????, is all.

rgds/be well all
Section28
There was a 'Government grants and subsidies' line added to Rex's P&L to the tune of $62.095 million. That would have been made up of original allocation of around $8.5 million under the Regional Airline Network Support program and the $54 million under the 'That ain't workin' that's the way you do it' program.

There was a serendipitously coincidental alignment between the recognised value of the government grants and the valuation of the asset impairment write down 'in anticipation of difficult trading conditions in the next two years'. Apparently those anticipated difficult trading conditions didn't preclude funding an expansion with a capital raising leveraged at 125 per cent.

I'm not seeing this end well for the Regional Express Group.

Last edited by MickG0105; 21st Sep 2020 at 12:49. Reason: Typo
MickG0105 is online now