I hope so questil.
What I am trying to convey is that Rex are making themselves more consumer friendly by offering the larger buying groups, and no doubt individual agencies with large volume an acceptable level of remuneration that will allow them to sell their services without adding fee for service above the airfare. Simply, those Agents that are supporting them by buying group or directly will be assisted in doing so.
Thus on a Rex $200.00 return airfare, working on industry averages on Sydney Albury return, a reseller would market this at say $225.00 on Qantaslink making $25.00 on the deal. Rex only has to match the deal and some (like me) would sell at face value making $10.00 or at worst an agent that wanted their $25.00 return could add $15.00 and still undercut the QF product by $10.00.
Clever marketing, and price drives the loads that allow expansion. So does taking care of your resellers. The SLF is not silly, at least until they enter an airport. If one carrier applies a formula to purchase a fare for $25.00 per person less than the competition and can provide similar service, then 60% of people will support them, the other 40% being Frantic Flyers with brand B and being paid for by their employer.
Rex is also looking good with experience and wonderfully jaded "lifers" behind the scenes and a nice mix of new blood and experienced management. It is good to see them taking the higher than middle ground in the current reshuffle, and I wish them clear skies. Expansion, unless you have a multi million dollar budget for advertising requires support. Support is earned by taking care of your distribution network. Rex is doing that extremely well in the current climate.
It is also well to note that some Agencies, mine included are pulling up to 8% on DJ where some are getting zip. It is all performance driven, and so it should be.
I hope this makes my stance and opinion a little clearer. It is a time where it is very hard to keep everything in perspective.
Best regards
EWL