New ships for REX!!!!!!!!!!

[TBM-Legend]

Word is REX has signed for some ex-SAS Q400's....who will fly them?:uhoh:

[dkaarma]

Flying them is the easy part, it's the landing without damaging the gear is the hard part :ok:

[KRUSTY 34]

REX pilots will fly them, but they soon won't be working for REX!

[Flying Meat Cleaver]

So who will REX pilots be working for K34? Are you eluding to a take-over or sale? Or just stating the obvious, the ever continuing exodus?

As for the new ship, quite a statement, how reliable is your information TBM?

FMC.

[SemperFly]

Flying them is the easy part, it's the landing without damaging the gear is the hard partLanding them without damaging the gear is easy, because the gear doesn't come down. It is landing them without damaging the fuselage that is the tough bit. :)

[monketgirl]

I see Rex profits have gone up!!Shows all this talk of doom and gloom is a load of nonsense. You people on PPRUNE who have forecast the decline and even closure of Rex are on another planet. Rex is very healthy. It is a very good argument NOT to put pilots wages up.

Shows why you guys are pilots and NOT business managers.

[max1]

If the cost of wages has gone down, i.e your workforce has shrunk. It stands to reason your profits go up. However, as your punters get the hump, income will go down. Time will tell.

[goatwhacker]

Rex is very healthy. It is a very good argument NOT to put pilots wages up.
Shows why you guys are pilots and NOT business managers.

*Sigh*. Tell that to the staff who have to cancel sectors virtually every weekend - the ops staff who make the call, the call centre guys who have to tell the passengers, the gate staff who have to deal with the pax who the call centre missed, the crew who have to deal with angry pax on board the aircraft.

There is a very simple reason profits are up. Cancelling so many flights means that almost every remaining flight goes out full or close to it. It's simple economics. Every fligth cancelled saves the company money.

Doesn't do much for the couple of thousand p!ssed off passengers though.

[Mr.Buzzy]

Yep, there is always an "order" before the end!

bbbbbbbbzzzzzzzzzzzzzzzzbbbbbbbbbbbbbbbbzzzzzzzzzzzzzzzzzzzz zz

[Two Wheeler]

New hangar being built in Adelaide. Cant be going so bad can they?

[mainteng]

Monketgirl, rex profits go up hey? They are still a dollar short of where mine were when i sold them 9 months ago:ooh:

[TBM-Legend]

6 x Q400,,,,,,,,,early 2009,,,,,sim,,,,:mad:

[KRUSTY 34]

Gidday monketgirl, and welcome to the wonderful world of Pprune.

I for one welcome the insight and varied opinion of others. I hope you stick around and continue to offer the other side of the debate. Regretfully in the past others have come in, offered the alternative, and then litteraly disappearded into the ether when the logic swung against them. I sincerely hope you will show more backbone!

As to your assertion that because REX are currently doing well and as such there is no problem, I suggest that you take the time to look at the numbers. It is true that LKH and his team have done a magnificent job over the last 3 years. The retireing of debt has been a major factor in allowing REX to weather this storm. The problem is, the storm is far from over. The serious lack of upgradeable pilots to command, and the continueing loss of experienced Captains, will soon see an exponential increase in the cancellation of services. You are aware of the strict minimum experience level for command?

Believe it or not we are in the business of transporting people, real people! If you are an employee of REX may I suggest you take the time to go down to dispatch and see for yourself the results of the company doing so well? goatwhacker has summed that one up nicely.

I hope you are right, and the majority of those here have got it wrong. Mind you after a quarter of a century in this business (and I'm a young'n compared to some here), I have never seen anything like this before. If I'm wrong, I'll be the first to admit it. If I and the majority here are right, then I fear that a once great company will at the very least be reduced to a shell of its former self!

Stay tuned.

[Shapeshifter]

IN the words of Rex chairman Lim Kim Hai, the regional airline weathered a "veritable tsunami" to record an 8 per cent rise in third quarter profits, to $8.2 million.

And what a maelstrom it was -- and still is. We all know about the effect of still-rising fuel costs, which account for close to 20 per cent of Rex's total expenses.

But the real dilemma for Rex is those bus drivers, er, pilots which keep ejecting as quickly as new ones can be trained. Pilot attrition is running at 50 per cent, with the figure expected to peak at 60 per cent this year.

Under the circumstances, Rex has every right to be pleased with its performance. “This airline is performing stronger and better each and every day,” proclaims deputy chairman John Sharp.

Rex is showing the right trends with revenue (up 9.3 per cent) growing faster than non-fuel costs (5.4 per cent). It's also leading on punctuality, which given the frequent whinges about Qantas flyers, this probably isn't saying much.

According to Sharp, the third quarter is traditionally the worse quarter because January school holidays and business does not pick up until late February. Easter -- a quiet time -- also fell during the quarter.

A positive feature of Rex is that 31 out of 36 routes are not used by any rivals, either because it's not economic or because their planes are too big.

Rex is confident of meeting the full-year forecast of a net profit similar to the previous year's $23.6 million. “Bookings for the last quarter are strong, translating into high load factors,” Lim said.

Earlier the airline expected a 10 per cent increase, but a poor first half put paid to that. But as Lim points out, Rex will make more money in the second half than Virgin Blue will make for the whole year.

Long-time Criterion readers would be well aware of your columnist's aversion to airline stocks.

But given Rex's share price slide -- down from the $2.50 a share level of six months ago -- we're happy to rate the stock a long-term buy.

--------------------------------------------------------------------------
The Australian (http://www.theaustralian.news.com.au/story/0,25197,23765908-23634,00.html)

[Flying Meat Cleaver]

Righto TBM, you seem to be in the know, which routes do you suggest the Q400s are likely to be utilized should they have the available crew and resources?

Secondly, the process of introducing a new type is long and expensive, one would assume such an exercise is currently underway, can you confirm this? If so this would obviously be eating into the profits for the end of financial year statement. Will it be mentioned?

FMC.

[Ramrod2]

Imagine what the results would have been if pilots had stayed. :}:eek:

[ABX]

From the SMH:
Rex lifts airline fuel surcharge
May 23, 2008 - 6:38PM



Country airline Regional Express Holdings Ltd (Rex) has followed on the heels of Qantas Airways Ltd and lifted its fuel surcharge for the second time in less than a month due to the sustained surge in world oil prices.
Rex said it would increase its surcharge by $4 to $40 per sector from May 27.
The regional carrier raised its fuel surcharge by $3 to $36 per sector on May 13.
Australia's biggest airline, Qantas, said its international air fares would rise by about four per cent and domestic fares by about three per cent from June 4 for tickets issued in Australia.
That hike, a result of rocketing fuel prices, follows Qantas' increase in ticket prices that came into effect on May 9.
The price of a barrel of crude oil, from which jet fuel is a derivative, has been hitting record prices lately, touching $US135 a barrel.
Overnight crude oil for July delivery closed at $US130.81 a barrel.
Rex general manager network strategy and sales Warrick Lodge said the airline responded to the rising oil prices.
"Rex is providing a critical and essential service to the bush, operating as the sole carrier on more than 30 routes, and in order to ensure that these routes remain viable it, like everyone else, must respond to the record oil prices."
Mr Lodge said even in the face of record fuel costs, average ticket prices inclusive of the fuel levy remained lower than they were when the carrier started because of "tremendous efficiency gains" over the six years Rex had been operating.
The fuel surcharge increase was applicable to Rex subsidiary airline Air Link, it said.
$40 per sector, the Australian travelling public must be amongst the most gullible in the world!

[Capt Wally]

......................"tremendous efficiency gains" this is the bit I like, they meant to say due to screwing the staff but I guess that wouldn't look too good on paper !:bored:


CW

[Transition Layer]

But the real dilemma for Rex is those bus drivers, er, pilots which keep ejecting as quickly as new ones can be trained

What a tosser!!!

[ACMS]

I just emailed the tosser with a suggestion that he research this "Pilot shortage" and write a truthful article on same. I'm not holding my breath.


Maybe a few of you could email him as well. His email is:

[email protected]

[evolved]

"Word is REX has signed for some ex-SAS Q400's."

Yeh right :rolleyes:. Source??

[captainstoobing]

A recent financial analyst review below...(not from the 'Australian')

The way ahead
Cash from operation for 1H08 was $18.6M, a rise of $3.3M (22%). We are predicting the cash balance to rise to $37M by year end and this is one of the enduring (and under appreciated) strengths of REX. That said, the market is focusing on short term factors, such as pilot shortages, and this has weighed heavily on the share price.
The guidance is for a flat bottom line year and that is prudent, although skewed by a number of unusual costs. In spite of the higher fuel costs and issues surrounding pilot shortages, it is conceivable that backing these items out, REX would have in fact met its original guidance of
10% uplift on last year. Adding to this is the observation that fares have continued to decline (3.6% in 1H08). If we assumed that fares were in fact increased by a mere 3%, it would lift NPAT by 7.3% in a full year (or for each 1% increase in fares, NPAT rises 2.43%). We would
suggest that this metric is not lost on the company and believe there is scope for modest fare increases as a means to improve margins and the overall bottom line.
And while conditions may be challenging due to skill shortages and spike in fuel costs, the impact on other less capitalised players is fatal. Notably, the failure of the largest competitor to Pel-Air in its core two tonne freight market is as significant as the demise of O’Connor
Airlines in the regional passenger market late last year.
The inevitable consolidation of the industry plays directly into a well capitalised and managed company like REX.
Valuation
Our valuation for REX sits at a nudge above $3.00. We use a DCF methodology and a high WACC (due in the main to the penchant for equity in preference to debt and escalation in interest costs with the 10 year bond rate currently at 6.4%). The valuation has been reduced
largely on the back of trimming this year and next year’s’ forecasts, although we maintain our conviction of strong foreword growth beyond this year for the company.

Monketgirl...welcome. I admire your passion. I too feel that the company will weather the strorm (in what capacity that remains to be seen), but nontheless, it does not dissuade me from applying. Hopefully (for my new careers sake they make it through this tough period).
Like any company there are staffing issues and wage issues.
I have been an Intensive Care Paramedic for 10 years, and in that time, my hourly rate has 'shot up' from $19.20 to $23.00 per hr:D.
I am the highest clinical level in the state, have been trained in operating theatres and perform identical procedures to that of an emergency department doctor. It is not about money for some people. Last financial year I made 65k (after 10 years at the top of the food chain).
The other people on this forum do make some valid points, which I have taken on board.
Ultimately, like I tell any new person to my industry...this is an opinion, you make up your own mind!!

[KRUSTY 34]

"That said, the market is focusing on short term factors, such as pilot shortages, and this has weighed heavily on the share price."


Typical beancounter analysis (my bolding and underline). All very accurate numbers wise, but completely missing the point.

The pilot shortage is not short term, and it is global. If Mr market guru had bothered to research that, then he/she may have a slightly different outlook regarding REX's long term viability. When the last of REX's experienced Captains walks out the door to the opposition, I can just hear the surprised gasps. "How the hell did that happen?"

Gidday Gavin. Hope you application is going well. Out of interest how many hours total aeronautical experience do you have? Genuine reason for me asking.

[Flying Meat Cleaver]

You need experienced Captains to run the so called ICUS programs that are being implemented. Its all well and good to bring in the cadets as the solution to the pilot shortage for the company but without the Training Captains to babysit the Cadets how do they ever expect these cadets to become captains??? CH and NH will be pretty busy if they are the last two left in 6 months.

There are also too many without the 500hrs multi slipping through the recruitment process simply to put bums on seats before the end of the financial year statement is released! :ugh:

Them wages better go up soon... and how.

FMC.

[Going Boeing]

REX has probably realised that they need faster aircraft to compete on the longer sectors with DJ's Embraer Jets and QLink's Q400's (eg Albury services) so selecting second hand Q400's make sense in these times of high fuel prices.

I don't know how they are going to crew them.

[Lodown]

The baseball mentality..."Build it and they will come."

[Flying Meat Cleaver]

I think its more a case of "Shaft them and they will go!"

[shooter]

Question; does the Q400 require a high capacity AOC?

Also;
I'd rather e a bus driver than a journalist, at least I can sleep at night knowing I didn't publically humiliate any one and ruin their life all in the name of selling papers!

[RampDog]

Going Boeing mentions REX having to compete with the DJ E170 and the QF Q400. I think that QF are (always will be) the main competition, but I wonder how well DJ are actually going with the Embraers. From what I see on the tarmac the E170s are quite often going out with very few bums on seats. I know that the jet service appeals to the pollies and government types on the CBR route, but it appears that DJ are not getting great loads on the baby jets, across the board. So do REX buy Q400s just to take on Qantas at their own game, or is it wiser to concentrate on the business that they already have. REX could then spend the money on stabilising their problem area- crewing and staff retention. The beancounters surely can see the sense of this, there must be savings and efficiencies in not constantly recruiting and training pilots and staff.
Ultimately, most will agree, bigger is not always better.:ugh:

[mootyman]

The rumour wasn't along the lines of " An Australian Saab operator is picking up 6 DHC - 400's " was it because I am sure there has been talk on another thread which matches this but is not rex.

[spiderbat3008]

shooter.........yes for rpt work.

[spiderbat3008]

mootyman.........try far nth qld.

[shooter]

yes for rpt work.


That will solve a few crewing problems, with a high capacity AOC, REX can put their cadets straight into the LH seat with no requirments to have any multi command time!

[Muff Hunter]

What a load of ****e, REX can't train people on their ****e box saabs let alone introduce a new type.

I heard REX are getting smashed by the E jet, especially on Albury, heard a number of flights going out with less than ten POB frequently.

[tenfouroldmate]

Monketgirl...
Shows why you guys are pilots and NOT business managers.

Really? Well, maybe these pilots do actually have in idea because they see what's going on in day to day operations and how the custumers are getting the raw end. Meanwhile "management" as they call themselves, still going about their daily business with head in sand. As long as there's air they can breath, at least one of them will curse the pilots and blame them for everything, including the sun coming up in the east, if you follow my meaning! The arrogance is remarkable. For the record, a lot of the management team are/were pilots!
And the shares going up does not mean they got it right...Telstra shares went up once; does that mean they're a well run company?:\
A possible reason REX still get's its planes in the air is because it was fortunate enough to pick up major routes with no competition. Hell, if the folk of Orange, Parkes, West Wylong, Cooma, etc. had another carrier to fly with, they'd have sent REX bust a year ago.
10-4 out

[Mr. Hat]

business managers

hmmm with about 30-40% of the total cost to the business i say they're managing a fair bit of business kiddo. Better be on your best behaviour or it could get expensive.

On another note - its good news that they turned a proft. J* VB and QF can breath a sigh of relief that they'll still have that pool of keen applicants.

[ABX]

Posts going missing from this thread?

Capt. Wally and my posts at least, maybe more. The thought police have been busy again.

Far as I can see the thread starter did not complain about thread drift.:ugh:

[strut5]

The way i see it, REX only has to 'weather the storm' until one major carrier goes under.... pilots will be dime a dozen again!!

[KRUSTY 34]

Back on topic. (happy mods)

The Q400's are a complete furphy.

Quote:

"That will solve a few crewing problems, with a high capacity AOC, REX can put their cadets straight into the LH seat with no requirments to have any multi command time!"

Just a tad simplistic shooter.

The introduction of a new type, the training, the dissimilar crewing, HCAOC hoops, etc, etc, etc... The cost... Big millions! My sources inform me that it isn't even something being considered.

Also, the multi IFR command time is only one of the requirements for these ops. REX's AOC requires at least 2000 hours total aeronautical experience for command. Many senior, and most of the new F/O's don't even come close. As only 50% of flight time by Co-pilots can be logged towards this requirement, the bypasses are starting to bite! And the Cadets? At least 5 years after graduation just to satisfy this one requirement!

The pressure is now building on a number of levels.

[Mr. Hat]

monkeygirl/strut1/aircraft,

keep hoping. its all you've got.

[40 beers]

In regards to the high cap AOC, my understanding is that they have kept the company structure/procedures/ops etc at the high cap level from the kendell days, so it 'should' be an easy process should they wish to go high cap.

Good luck to them..



we can, we can demolish 40 beers...

[Timber]

Things are not going so well in the US. It is reported that American Eagle will retire its entire Saab 340 fleet this year. Could that provide a source of experienced pilots for Rex?

[KRUSTY 34]

Nice one Timber.

Keep grasping at those straws!

[dkaarma]

Landing them without damaging the gear is easy, because the gear doesn't come down. It is landing them without damaging the fuselage that is the tough bit. :)

Touché sir!

[tenfouroldmate]

However if VBs shares go any lower REX could buy 'em up and get their pilots back...

This could be true but the current trend indicates REX doen't like taking on experienced pilots, especially those with a SAAB endorsement. Maybe if VB was South African based, the pilots might get half a chance of getting a job with REX. :confused:

10-4 out

[plasticmerc]

just a question to you all, now that qf and j* are going to ground planes, also i see J* differing planes, will that slow the pilot exodus from the smaller companies?
i hear and see most companies complaining they are under staffed in all areas of aircraft pilots/engineers if most had read the signs many years ago they wouldn't be in this situation.
now fuel is up airlines around the world are in retreat mode,
some are just going to hold there growth plans back a while.
I guess the need for rapid pilot recruitment in that area are going to stand still a while,
now is the time that companies should be training people giving them the time of day that is required so that if and when the market picks up again they will be able to weather yet another storm.
woldn't this be a better solution than just crying fowl and using a 457 visa's as an excuse, sure as markets fall and rise all around there will be a forever changing supply and demand but shouldn't you look in your back yard first before you look in someone elses!
just a thought anyway

cheers