Originally Posted by
Deano969
What QF took from ZL is more than offset by ZL now running to PQQ and CFS along with DPO
IMO REX sees itself more like an emerging QF or VA
Keeping solid regional only and moving away from underperforming places like Lizmore, Grafton, Taree, Cooma etc all the while building their jet network
Regionals will still play a part, but their move is away from servicing low volume places better served by the likes of Pelican, shame Pelican has ties with VA or REX could have worked with them so they both could have benefited off each other
Hmm, I can see QLink have moved back into South Australia in several Rex ports, and are operating ABX-MEL, WGA-MEL, BWT-MEL, GFF-SYD, OAG-SYD, MIM-SYD, MQL-SYD, plus BDG-SYD, which would have been an ideal Rex route. Then theres all the increased capacity on other competitive routes. Not sure how PQQ, CFS and DPO have offset the losses, considering MIM, BWT, GFF were Rex goldmines at one point and now running at 1/3rd what they were with triangulations when the competition flies direct... sad really. I think they have really dropped the ball and QF have seen that they are willing to compromise these routes to prop up tendered routes in other states, which without the mass revenue from the other routes will become loss making rather than cash cows as the cost of operating these routes exceeds the tender amount.
Then there's the crew issue...
The main thing that killed the regionals in the US was locking into fixed price deals with the majors, and had no out clauses for when costs spiraled. If they had independence in price setting they could adjust, but thinking fixed price tenders and charters are long term options can get you into deep water fast.