Originally Posted by
1A_Please
The Australian is reporting that REX has announced to stock exchange that t now expects to lose$15M this year but bizarrely blames the loss on the latest Victorian lockdown. Seriously!!! The Victorian Government has a lot to answer for in its incompetent management of the Covid crisis but I don't think we should blame them for REX's disastrous management decisions.
They've had fourteen days of lockdown impacted business to deal with and that has ostensibly cost them over a million dollars a day. Further proof, to the extent that it was required, that establishing jet ops routes that were 90 percent exposed to the unchallenged lock down capital of the country showed no signs of any risk management thinking.
That said, Rex's total cost base would probably only run to about $1.1 million a day when running at full tilt. Very difficult to reconcile what they've announced today with their break-even announcement less than a month ago.