Arse over Rex

[60HOLDING]

Rumour has it from a strong authority that Rex is to join the long list of RPT companies to go wheels up. From a source within the Ansett administrators, Rex is several months behind in 340 repayments, and is also being threatened by Airservices for arrears in erc's.

Here we go again in the neverending circle of Airlines coming and going! Apparently the Asian investors behind Rex have also had enough! Who could blame em!

[Manwell]

Hmmm, hope not.

I would actually like to be able to think that a bloke can make a living in aviation outside of the airlines. If they're having trouble what hope is there for anyone else?


Life's a bitch, and then you fly.;)

[Chilli Muscle]

Did the CEO take a golden handshake before he bailed out a while ago - maybe performance based?.

[HabibBro]

Was the Porshe' not enough one might ask???

[Sperm Bank]

Don Kendall made millions from Oz regional aviation. Surely there is someone out there with a similar level of business acumen! For all the lads at REX I sincerely hope so!!

[permFO]

Don Kendell also realised that to survive you needed to be tied up with a major carrier and eventually he had sold all his and the families shares to Ansett. Its very sad if it is true about Rex and I feel sorry for the dedicated people who made a go of it. Just because they have been through it before doesn't make it any easier.

[questil]

MMMM hope not, the loads seem to be increasing accross the network well above 50%, Depends on yield but recruiting continues and have not heard any such negatives filter through.
Fingers Crossed

[MoFo]

How do you make a small fortune out of aviation.....?

[Whiskery]

..............start with a BIG one !

[R2000]

FIrstly, I hope this rumour is wrong.

My point is: What is the impact on NSW based regional airlines of the financial situation of the rural economy?

Could it be that the worst Australian drought in recorded history has removed funds available for discretionary spending - such as flying instead of driving?

I know a farmer who was extremely well prepared to face regular droughts. Because of that preparation he is still farming now, but he did have to fork out $5000 a week for a long period to keep his sheep alive. All his greatly diminished (25% of normal) wheat crop went directly to feed the sheep too. Result - zero new income for this year. He predicts the banks will start to foreclose on many farmers now that there is some green back in the paddocks, but still no sign of a wool clip or crop income for many more months

So, do NSW regional towns still ride on the sheep's back? Would not any airline have been stressed by this situation? Should the airlines apply for drought relief funding - or do they already?

Regards,

[FL CH]

Another forum is reporting that the first of the newer Saabs has arrived.

[Naverick]

60holding,

Words such as, 'Rumour', 'Source', 'Apparently', used in your post lead me to think that you haven't got a clue what's really happening at REX.

AS an employee at REX, I'm bound by our policy and procedures not to disclose the current conditions at my workplace, however, I have not heard anything to suggest that your post might be correct.

What I can say is that loads are good at the base from which I work, some days better than others, but the trend seems to be heading in the right direction.


Our partnership with VB is clearly making a difference and with the said company increasing it's market share, REX should reap the benefit from VB's continued success. It must be said however, before this partnership REX had grown without any oncarriage agreements. This is testament to the excellent service we offer to our passengers.


We have recently turned 1 yr old and considering the dire straits that Hazelton and Kendell were in under administration, REX's success is nothing short of being awsome! The dedication and commitment of the few that carried the company through it's darkest hours has produced within REX a strong, unflappable spirit that I'm sure the shareholders will continue to believe in.


Pilot and F.A. training is happening as I write, recruitment is continuing, 'new' aircraft being delivered.


I think we might be doing ok...........

[ZLBoy]

We at REX are still in a position where we have as yet not seen sustained profitability. On a week by week basis we have seen individually profitable weeks while others have not been so good - no different to other regionals. The first of 10 new (mid-life) SAAB's, RXX, arrived yesterday with a firm schedule for the rest by new year.
The bottom line is that REX has not gone wheels-up and there is no indication based on current trends that we will. Yes we have been struggling but the markets we serve are growing. There are 7000 seats sold next month on SY-CB out of 8000 in the market, I think that is a great result.
There will be further restructuring in the next few months however this is part of a longer term sustained growth plan that has already begun to produce results. The industry has changed greatly since Don and Max began many years ago, the important point is to recognise changing market needs and have a flexible enough revenue base and cost structure to evolve as required.
REX is in the process of doing just that.

[apacau]

I am confident about the future of Rex - great little airline with great attitude which is increasing in popularity weekly. However:

There are 7000 seats sold next month on SY-CB out of 8000 in the market

I find this VERY hard to believe. In fact I don't believe it at all. Not only because SY-CB is a very late-booking market due to the business aspect, but also that LFs are currently respectable but certainly not fantastic and no reason to explain why, a month in advance, they are nigh 90%.