I'm a little confused, how exactly is Air T going to make money out of this deal? REX's profitability has been systematically destroyed from the minute the clowns running the show decided that the future of the company rested with a domestic Jet operation. In doing so they all but abandoned the regional side of the business. The core strength of the regional business, the low debt/equity ratio, the lack of competition on their golden routes, and a strong relationship with the regional centres they service, have been lost forever.
With over $100M in Taxpayer donations, how much profit has the airline made in the last 18 months Sam. I can't seem to find that in the Fact sheet!
There's been much speculation that Air T are only interested in REX for the aircraft and converting them into spare parts. It appears that this may be more than speculation. The Government have placed a caveat on the aircraft to stop them from doing just that. Coincidence, I think not. If the government doesn't trust Air T to make a go of it without parting out the fleet, then I ask the question again. How is Air T going to make money out of this?
For those of you who remember, Lindsay Fox and Soloman Lew had all but signed the deal to save Ansett when the Government instructed the Administrators to remove the airport terminals from the sale and sell them to private operators. The rest as they say is history.