Originally Posted by
Deano969
Being somewhat of an unknown and their lack of mass advertising, a slow start was always on the cards
A "lack of mass advertising" was entirely Rex's call. They decided to get into jets, cut their marketing budget and relied on Sharpie spruiking on Sunrise. Great plan. That whole "slow start" was on them, and it most assuredly wasn't inevitable.
Same same with the agency deal. They could have signed up with Flight Centre from the get-go. It took them 18 months of being bled white to get the message.
Originally Posted by
Deano969
Cast your minds back a few years pre pandemic
REXs loads had never been high, low to mid 50%s average over 10 or so years
But they always turned a profit, not massive, but a profit is a profit....
Where do you come up with this stuff? Regional load factors have been in low- to mid-70s for the entire time that Rex has been in existence, bar 2020-21 when they slumped into the 60s. By Rex's own accounting they've flown high-50s to 60-something load factors for the last half a decade. Even with the leg-up from subsidised routes, no one makes money with half loads.
Originally Posted by
Deano969
50% increase of 737s by Christmas
As the Zen Master was fond of saying, "We'll see."
Originally Posted by
Deano969
Again, it's more likely REX is looking at 5 years, 10 years, not how many bums on seats in the short term
As many a failed enterprise has learned, 5-10 year plans are meaningless if you go broke in three. You need to be able to navigate the short term in order to get to the long term.