Originally Posted by
MickG0105
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.
And that's the rub. This will be smoke and mirrors and will not show the true case. They appear to be masters at it. Everything they are doing is to try and divert attention from themselves. To be going after QF the way they do just doesn't make sense.
Break even case will have been after the subsidies and a reversal of their profitable position before getting into the B737's. That could easily be all of a 70M or more turnaround from last year. Now it is a further 15M loss after just a few weeks of that release. It is almost the end of Financial Year and the full year reporting due in August I believe. The truth will come out very soon I suspect.
The thing that surprises me is that the press give air to all this without any analysis. Lets see what they do during reporting season.