The so called pilot shortage......
There are enough competent pilots available in Australia for REX to hire.
The problem is not finding the pilots but retaining them.
Who cannot understand a REX Saab F/O moving to one of the bigger operators to fly a nicer, newer jet at double the pay..???
With their new school REX anticipates this flow-through of F/O's. As long as there is demand for pilots from the bigger ailrines, the school will provide new inflow to REX for F/O positions. When the flow-through stops the school is in trouble or has to start training for China and/or India..
For the Captains the situation is entirely different. It is essential that REX retains the experienced Captains, but even these are now enticed by the option to go to the bigger airlines for basically the same pay as they have today (when they start as F/O), with the prospect of getting fast-tracked to a jet command and enjoying the much higher pay as well....
It is very difficult to see how REX can stay viable without some drastic measures to retain the experienced pilots and trainers. As a minimum they would have to be looking at SERIOUS retention bonusses for these key people. Think about $25,000 - $50,000 a year for the next 2-3 years. And then still DEC's may have to be brought in as well....
With the shares trading at just above $1 it seems the market has also some doubts about how the future of REX will shape up.