EY was very bullish at the start, I recall they advised it would be all finalised in a matter of weeks, considerable parties had been lining up for the data room. I’d say what followed is a disagreement between what EY wanted (ie Rex as a whole) and what those parties wanted (ie pick apart the carcass only).
It’s such a complicated group, with many assets, engineering, and so on, jointly used across many arms. Selling off assets to reduce the debt for a sale is also problematic, the assets are mostly needed aside a few, attempting to re lease other hangers or buildings post a sale just adds to the continued problems.
The Saab operation can’t realistically be seen as continuing without some form of government tie up with a buyer, if a buyer even exists. Even then, still seems somewhat impossible when looking at the numbers, and what to do with the fleet in the long term. I reckon even Labor would get cold feet. It’s essentially an investment for a new startup turboprop carrier, we would be talking hundreds of millions required over the coming years.
The Government would better off going into a deal with Link when the carcass picking session begins. Certainly will get access to some cheap equipment and spares, with the ability to increase its network, they will require government funding however to make that happen. Perhaps Labor should have chosen its words more carefully when it went under, they have told the world essentially they won’t let the regions suffer from lost connectivity. They might have a get out of jail card if they form a tie up with Link.
Last edited by nomess; 21st September 2024 at 21:56.