Originally Posted by
Ladloy
Their leases are 25k per month for each aircraft. Is that quite cheap? Understandably that is only one cost of many.
Yep, a very cheap deal. And one you would expect during ‘these unprecedented times’ and having so much tin parked in deserts and around empty airports. But as has been mentioned, add ancillary costs to that and all the other bits and bobs and the grand total is a little bit more than $25k. Regardless, at $39 per passenger head and let’s say a (generous) load factor of 40%, REX are simply not making money on the 737 operation. It’s a dud. Sharp is a dud. Their so-called business strategy is the behemoth of all duds.
But wait, with JQ dropping fares to $30 Mr Sharp will be crying into a tissue on the A Current Affair hotline and over Rod Sims desk by 0900 Tuesday morning.