PPRuNe Forums - View Single Post - rex Celebrating 20 Years
View Single Post
Old 4th Jan 2023, 05:30
  #391 (permalink)  
43Inches
 
Join Date: Oct 2007
Location: Aus
Posts: 2,789
Received 415 Likes on 229 Posts
Originally Posted by Mr_App
I don't believe they can finance a fleet renewal regardless, running some basic rough numbers. They will need to a new buyer to inject some cash. Perhaps that is what they are doing. Building the business up, FIFO and Jets, then try and get a partial buyer.
That's why the finance gods created leasing companies. So that the small fry can afford to maintain new fleets. There's a big difference between leasing an aircraft such as the 737 to break into a market and leasing similar turboprops to the SAAB to service established profitable markets. With Rex it's more what can replace the SAAB, there's not much in the market that matches it's operating margins on thin routes. That being said the SAAB itself is not the problem, it's post Covid supplier malaise.
43Inches is offline