Rex Expanding Into Jets

[Stationair8]

News item on radio today, mentioned that Rex were looking at acquiring ten jets to run east coast domestic service.
Interesting development if they proceed, plenty of airframes available, flight crew available etc.

[Green.Dot]

Left field! One minute they want a Government bailout now they are looking to expand?!

Noted...

[dijical]

From AFR (https://www.afr.com/companies/transport/rex-takes-fight-to-qantas-and-virgin-20200511-p54rvs)

Regional Express Holdings will capitalise on the turmoil from Virgin Australia’s collapse (https://www.afr.com/chanticleer/five-lessons-from-virgin-s-collapse-20200420-p54lj6) and invest $200 million launching capital city services to compete with Qantas, Jetstar and Virgin Mark II.

In a move that could harm the sale price achieved by Virgin’s administrators, the regional airline operator is working on a business plan that includes leasing 10 narrow-bodied jets as well as employing new pilots, cabin crew and ground staff.

Virgin's administrator, Vaughan Strawbridge, has called for indicative bids for Virgin to be lodged by Friday. Industry sources say the business was worth about $1 billion depending on the amount of secured and unsecured debt.
Several consortiums have shown interest. They include Canadian infrastructure investor Brookfield, Wesfarmers, private equity companies Bain Capital (https://www.afr.com/street-talk/bain-capital-bankers-up-for-virgin-calls-in-ansett-team-20200510-p54riq) and BGH Capital (https://www.afr.com/chanticleer/bgh-rejected-exclusive-virgin-rescue-20200505-p54q32) and distressed debt specialist Oaktree.

Rex’s deputy chairman John Sharp said the move by Rex to start a new capital city airline would require about $200 million in capital investment.
This would be achieved through the sale of new shares in Rex, which has been listed on the ASX since 2005. The company is controlled by executive chairman Lim Kim Hai and his business partner and Rex founding shareholder, Lee Thian Soo.“We have been talking to half a dozen private equity and investment banking entities about investing in this new venture,” Mr Sharp told The Australian Financial Review.

“We are working with those parties and will narrow that down to one in the next three weeks or so. The most significant aspect of this is we will be the only capital city operator that is debt-free.”Three-airline marketMr Sharp, a pilot and former transport minister in the Howard government, said competition would be good for consumers and the economy. “We may well have a three-airline market,” he said. Mr Sharp said the new Rex capital city operations would be a cross between Qantas and Jetstar but with a lower cost base. “This will be halfway between a full-service airline and a low-cost airline,” he said.

The plan is to start flying between Sydney, Melbourne, Brisbane, Adelaide and Perth early next year when the airline industry comes out of the coronavirus freeze. Rex has already had discussions with the Civil Aviation Safety Authority about amending Rex’s Air Operator’s Certificate to include jet aircraft and not just turbo-prop aircraft.Cheap leasesMr Sharp said this was a good time to lease narrow-bodied jets such as Boeing 737s or Airbus A320s because of the distressed state of the global aviation market. “We plan to lease a fleet of about 10 aircraft and hire new pilots, cabin crew and ground staff,” he said.

Mr Sharp said Rex would leverage its existing management and corporate infrastructure to run the new services. “The domestic aviation market is not going to go back to what it was three months ago so we are ready to scale up in line with demand,” he said. “We are doing this because we see an opportunity. We have the advantage of having successfully run an airline for 18 years,” he said.

Mr Sharp said Rex was confident of being able to fly in and out of Sydney because it was the third-largest holder of slots at Sydney Airport. “We will bring a much lower cost base to the capital city routes,” he said.

Mr Sharp said Rex would be able to compete with Virgin and Jetstar on the price of tickets because of its lower cost base. “For example, a Virgin captain is paid about $240,000 a year compared to about $200,000 for a Jetstar captain,” he said. “We would not want to pay anything more than Jetstar is paying. Even if we do go to Jetstar’s level we will still be 20 per cent cheaper than Virgin.”

Rex, which was founded in 2002 out of the wreckage of Ansett, flies to 60 regional destinations. It has a fleet of 60 Saab 340 aircraft and has made an operational profit every year since 2004.

The Saab 340 aircraft flown by Rex seat 34 people which is the right scale for the regional routes. There is no competition on 85 per cent of the routes flown by Rex.

[snoop doggy dog]

Short memories. Qantas done the same thing a few years ago and they were doomed Then by miracle (bullish!t), turned it around :yuk: Cook the books (pay for Jetstar maintenance etc), then stop once found out and like magic... Profit :ooh:

REX thought they'd try it out too. The rest have, so why not. It's all about 'Jobs for Australians,' :yuk: not off-shoring ALL profits :ugh:

Senior Management in Aviation, get away with lies and deceit too easily in Oz... Like politicians :ugh:

​​​​​​​REX needs fleet replacement at some time. Possibly an opportune time.

[Lookleft]

Just goes to show that there is nothing new under the sun. I think Mr Lim and John Sharp realise that Virgin is probably not going to emerge from administration and that now is the time to expand. Upgrading an AOC is simpler (in a relative sense) than obtaining a new one. Just look at the experience of Virgin Blue and Impulse in 2000. Impulse were up and running with 717s before VB. As to who will fly the things well thats a whole different ball game. There will be plenty of experienced NB pilots willing to sign whatever is put in front of them to get back into the air.

[TheFrenchConnection]

AMBITIOUS ..Their average aircraft is 25 years old . They don't own an an aircraft under 20 years old . They fly only a few Jets the West Wind ,10 pax I believe. YES REX definitely needs fleet replacement some time soon

[krismiler]

Virgin MK2 will almost certainly pull out of marginal and loss making routes, some of which which REX may be able to turn a profit on with a smaller aircraft and lower cost base. Regional jets might be a better starting point as they could replace the SAAB on longer sectors, and a lot of travel to and from regional airports is non discretionary. Trying to fill an airliner with highly price conscious bogans and make money while competing with two larger established operators doesn't always work, just ask Impulse and Tiger Airways.

Kendall Airlines had its fair share of problems when transitioning to RJs and CASA would certainly be keeping a careful eye on them.

[bazza stub]

So we have/had a few domestic jet operators all of whom cry poor on a semi regular basis, two of which have just gone under, aaaaaand now we have Rex wanting to reinvent the wheel by filling the void at an even lower cost? Good luck.

[ECAMACTIONSCOMPLETE]

AMBITIOUS ..Their average aircraft is 25 years old . They don't own an an aircraft under 20 years old . They fly only a few Jets the West Wind ,10 pax I believe. YES REX definitely needs fleet replacement some time soon

theres nothing special about flying jets. Impulse started with beech 1900s and now they fly A320s and 787s.

There are plenty of unemployed jet pilots both local and overseas Aussie expats who would jump at this, which would also satisfy any issues CASA might have with lack of jet experience in the operation.

Sounds like it would be a near full service carrier with a low cost base. This might be the kick in the pants the Aussie domestic market needs to break up the comfortable duopoly.

[Green.Dot]

Out of all the things I have read on PPRUNE lately this is one I can actually see as a probable chance of going ahead. A cashed up Singaporean with a golden opportunity to almost “steal” jets in a busted market, a weakened QF and VA and plenty of 320/737 pilots who will sign up.

[Paragraph377]

If it’s what Sharp wants it’s what he will get. Too many friends in high places. Sharp embedded himself in aviation as a consultant and lobbyist after life in politics. It would appear that his travel rort affair, approximately $9,000, ended up being a godsend as he has gone on and done very well for himself don’t you think? Mr Lim has reaped the benefits of some favourable decision making that Mr Sharp has been able to achieve in his current role at REX. Funny that....

[LostWanderer]

Hotdamn that is out of left field! As others said it’s a good time go get a cheap lease but sometimes it’s best to stick with what you’re good at. 10 737/A320’s and the training, proving, marketing and every other cost associated with introducing something like this... doesn’t come cheap. Not impossible by any means, just a very expensive experiment.

Also wonder if they plan to employ off the street jet guys and cause chaos in the SAAB ranks or flow through from prop to jet when it’s all up.

I gather this is either Rex chasing some publicity since it’s all about VA and QF these days or it’s a long long long long way off seeing a Rex tailed NB jet in the sky.

But hey, jets = jobs! I hope they pull it off.

[galdian]

If nothing else a spoiler by REX to announce, anyone looking at VA2 would have to consider the impact of an existing operator expanding with an expected lower cost base, if nothing else REX would erode an uncertain market post CV19.
Maybe not a dealbreaker but would have to be a consideration.

Of course that assumes anyone looking at VA2 is actually looking to run it as an airline rather than just maximising any perceived assets.

[flyonthewall]

Virgin MK2 will almost certainly pull out of marginal and loss making routes, some of which which REX may be able to turn a profit on with a smaller aircraft and lower cost base. Regional jets might be a better starting point as they could replace the SAAB on longer sectors, and a lot of travel to and from regional airports is non discretionary. Trying to fill an airliner with highly price conscious bogans and make money while competing with two larger established operators doesn't always work, just ask Impulse and Tiger Airways.

Kendall Airlines had its fair share of problems when transitioning to RJs and CASA would certainly be keeping a careful eye on them.

Krismiler, there is no such thing as a ‘regional’ jet.

Ansett managements push to introduce the CRJ at Kendell was a sorry example of this misconception. That they attempted it with such a top heavy management structure meant that they were doomed from the beginning. The issues there were nothing to do with anything that is part of CASA‘s role and everything to do with a lack of understanding of the operation AN took over.

A jet is a jet, and it will always have different operating economics to a turboprop. If you really think “Regional jets might be a better starting point” on routes like MEL-BNE and SYD-PER then I’m not sure you understand the economics of airlines.

[Pundit]

Sharp is the Treasurer of the National Party and has been very successful in getting support for Rex under the guise of helping Regional Australia aviation.


CASA will fall over backwards to help him get his jets on the Rex AOC. With excess VH registered A320's and B738's around, what is the hold up.

[kingRB]

But hey, jets = jobs! I hope they pull it off.

I don't. They are disgusting company in relation to treatment of their employees and the last thing the our industry needs them getting larger market share.

[Pundit]

Disgusting company or not, they will get government support, they will get market share. Vale VA

[PoppaJo]

I don't. They are disgusting company in relation to treatment of their employees and the last thing the our industry needs them getting larger market share.
Yep, but they will have no issue at all getting type rated applicants, most still current.

They could breed their own as such. They will pay substantially lower A320/737 rates vs the market, would they want to take on those who will cause union problems in the future? There are a few operators here that are fairly selective with who they take and where they came from.

It won’t be a career job so no point joining expecting long term wage increase to market levels. It will always be a bottom of the barrel remuneration. 100k FO, 160k LHS. Suck it up or simply leave for China.

[Lookleft]

There were operational problems with the CRJ at first but that had a lot to do with how they were introduced. No surprises that TJ was a big part of that problem. The early Kendell pilots were set up to fail as they did their endorsement in Canada, their line training in South Africa then were expected to operate to Ansett procedures for their check ride! This time around there won't be any parent company dictating how the operation will be introduced and there will be more than enough experienced pilots to handle the expansion.

[Oriana]

is it EBA time at REX?

[Paragraph377]

There were operational problems with the CRJ at first but that had a lot to do with how they were introduced. No surprises that TJ was a big part of that problem. The early Kendell pilots were set up to fail as they did their endorsement in Canada, their line training in South Africa then were expected to operate to Ansett procedures for their check ride! This time around there won't be any parent company dictating how the operation will be introduced and there will be more than enough experienced pilots to handle the expansion.
Lookleft makes a very succinct observation regarding the CRJ shenanigans. Well said. And yes, come what may, hopefully the big angry man Teejay will have no active part in REX’s plans.

[Tubman601]

Well that’s interesting, also we’ve had enquires from a Brisbane based company for ground equipment, suit A220/320.
Could be an interesting couple of months.

[TT738]

& here we all thought Rex would be flying Essendon/Bankstown.

Rex move makes perfect sense, but could also be a singaporean move to scare off all other bidders. SQ might pick up bits of VA very very cheaply including non-unionised staff

[TT738]

Well that’s interesting, also we’ve had enquires from a Brisbane based company for ground equipment, suit A220/320.
Could be an interesting couple of months.
more like an interesting couple of weeks. This announcement is well timed to scare off other bidders.

Rex already flies into BNE, SYD, MEL & think there might be a few VA staff looking for jobs, as long as they are prepared to work for less & go non-unionised.

[Lookleft]

Rex already has operations that cover the country. Not too difficult to imagine that being pulled together to create an extensive domestic network.

[non_state_actor]

Rex already flies into BNE, SYD, MEL & think there might be a few VA staff looking for jobs, as long as they are prepared to work for less & go non-unionised.

If it's A320 there won't be to many VA pilots in the mix. Good news for the the Airbus Tiger crew though.

REX may win the battle but could lose the war. There are a few more costs involved with running jets than just pilot salaries. You could have the cheapest crews but the cost of fuel/airports/catering/enroute charges etc won't change. Also they won't be able to throw a tantrum at major airports about fees like they do in the country either. It will be interesting in how they handle that side of things. Aerobridge access is another thorny issue in Australia. I doubt they would want to be busing up to 360 people every sector

[Gnadenburg]

Plenty of expats too. I'm guessing many have or will be displaced.

[wishiwasupthere]

& here we all thought Rex would be flying Essendon/Bankstown.

No mate, just you and all your alter egos.

[TT738]

No mate, just you and all your alter egos.
Archerfield ?

[krismiler]

A jet is a jet, and it will always have different operating economics to a turboprop. If you really think “Regional jets might be a better starting point” on routes like MEL-BNE and SYD-PER then I’m not sure you understand the economics of airlines.

I wasn't referring to main trunk routes, I was thinking of secondary routes which struggled with a B737 and VA cost base but might be doable with a smaller aircraft. Some of the legs in the REX network are already quite long and might be suitable for a jet at certain times which would increase utilisation. Going straight into full size airliners might not be a wise move depending on how the post virus situation pans out, I'm sure they don't want to become another Air Australia.

[normanton]

So the company crying poor only a month ago, now suddenly has $200m to blow.

[TT738]

So the company crying poor only a month ago, now suddenly has $200m to blow.plenty of cash around for good ideas.

Wonder what Rex would do to retain Virgin frequent flyers ? Offer some sort of deal to velocity trustees, so points could be used on rex jet services ?

Maybe some sort of a % deal or strictly limited ff seat availability initially ?

[Icarus2001]

Wonder what Rex would do to retain Virgin frequent flyers ? Why would they want to take on the liability? There is no upside.

[Wingspar]

So the company crying poor only a month ago, now suddenly has $200m to blow.

Exactly Normie!

And there’s a lot more to running a successful domestic airline than just pilot costs!

[Denied Justice]

$ 200 million won't go far to launch and sustain a "ten aircraft" competitive operation.

What these comments by REX will do is effectively scupper a VAH resurrection, especially in the context of the administrators handling of the insolvency process with unrealistic targets and debt expectations.

[grrowler]

The good thing is props can’t fall off jets - smart move...

[normanton]

plenty of cash around for good ideas.

Wonder what Rex would do to retain Virgin frequent flyers ? Offer some sort of deal to velocity trustees, so points could be used on rex jet services ?

Maybe some sort of a % deal or strictly limited ff seat availability initially ?
Well considering that Velocity will most likely end up in the toilet as a creditor to Virgin, my answer to your question is absolutely nothing.

The good this is props can’t fall off jets - smart move...
:D

[mostlytossas]

Qantas would smash them. So would Virgin Mk 2 if it gets up. Look at Rex's track record. They move in on someone else's turf like in WA but when Q/link move into there turf such as in SA they chuck a wobbly. Pull out of KI and threaten the same for Whyalla claiming unfair competition. Constantly whining about airport fees etc ,always looking for taxpayer/ratepayer assistance and screw their workforce to boot.
If they went and played with the big boys on trunk routes it would be Compass all over again....I give them 6 months.
However what they may like to consider is smaller jets on their long routes such as Sydney- Broken Hill etc, that might work.

[VH DSJ]

Their Saab's could easily complement the jets when loads are light and they can't fill A 737/A320. I reckon they've got a winner here!

[aviation_enthus]

Loving the commentary on here... 🤦‍♂️

Personally I’m not surprised. There’s been rumours of this for years BUT the recent Lim Kim comments RE the Virgin Administrators was taken the wrong way by most of you I think. Reading between the lines I thought he was disappointed the administrators weren’t cutting VA down to a smaller size so Rex would buy them.

But looking at it from a practical view (no emotion unlike some):

- already have staff, offices, parking areas, slots in all the capital cities.
- enough redundant 320/737 crew floating around to fill at least initial staff positions (especially training and checking).
- 737/320 lease rates would be low right now and Rex could probably get a better deal than current operators
- fuel is cheap and unlikely to go up in the next 2-3 years
- Rex management has plenty of experience running an airline. Yes no jets but it’s just another aircraft that needs filling. They know revenue management, cost control, maintenance, etc. It’ll be adding to what they do.
- they already have feed from a regional network which may fill +10% of their seats from day 1.
- all indications are that they’d stick to linking BNE/SYD/MEL/ADL/PER. With a small route network covering existing Rex bases, they’ll keep their costs reasonably low.

PLUS it looks like being funded by new equity in Rex via the sharemarket. This means no debt to service, which will keep their costs down significantly.

So given all the above I’d argue their costs may come in close to Jetstar. They certainly won’t be chasing the full service market so that should allow them to make a decent profit out of a small network.

It may just be a shot across the bow to any new operators in Aust, but it does have a very good chance of succeeding.

[B772]

This news was known by insiders about 1 month ago. I posted the following on another thread on 15 April. Todays announcement has added PER and BNE. I understood PER and BNE was to be Phase 2 of the expansion.

" REX is not 100% foreign owned. In fact the top 20 shareholders only own 86.8% of the company. You would be surprised at who owns small holdings in REX. REX is up 23% today on the ASX.

REX know the SF340 is too small for the larger markets in the ADL-MEL-CBR-SYD incl Tasmania golden triangle. They are looking at larger aircraft again. This makes 3 airlines who are interested in commencing an operation cherry picking routes. Watch this space when the wheels fall off VA."

[Matt48]

Krismiler, there is no such thing as a ‘regional’ jet.

Ansett managements push to introduce the CRJ at Kendell was a sorry example of this misconception. That they attempted it with such a top heavy management structure meant that they were doomed from the beginning. The issues there were nothing to do with anything that is part of CASA‘s role and everything to do with a lack of understanding of the operation AN took over.

A jet is a jet, and it will always have different operating economics to a turboprop. If you really think “Regional jets might be a better starting point” on routes like MEL-BNE and SYD-PER then I’m not sure you understand the economics of airlines.
" No such thing as a regional jet". Strange, how come some manufacturers use 'CRJ' as part of the nomenclature, such as Canadian Regional Jet, CRJ, and BAE 146 RJ, usually reserved for craft of 100 to 150 seats or less.

[exfocx]

Their Saab's could easily complement the jets when loads are light and they can't fill A 737/A320. I reckon they've got a winner here!

Are you meaning that if the loads are light for a 737/320 (from 160 down to 36 seats) on M/S/B route , they could just throw on a SAAB?? Surely you're not serious, as I doubt that'd go down well with travellers.

[VH DSJ]

Are you meaning that if the loads are light for a 737/320 (from 160 down to 36 seats) on M/S/B route , they could just throw on a SAAB?? Surely you're not serious, as I doubt that'd go down well with travellers.

LOL ..I should have added a sarcasm emoticon.

[Tubman601]

Well that’s interesting, also we’ve had enquires from a Brisbane based company for ground equipment, suit A220/320.
Could be an interesting couple of months.
This wasn’t REX by the way.

[InZed]

I think you might find some nearby (read: East) Pacific neighbours with surplus A320CEO, A320NEO and A321NEO fleets parked up all over NZ...

With a recently almost $1bill government loan... And a desire to reenter the Australian market.

There has already been a lot of talk from the NZ unions about subsidiaries (and highlighting associated contractual protections in place), discussing potential Australian domestic operations, and the CEO's stance that he is prepared to take advantage of absolutely any gap in the Australasian market.

:confused:

[Pundit]

Air New Zealand has always wanted to be a player in Australia. May be the new world will be QF, NZ, JQ and Rex

[Paragraph377]

Air New Zealand has always wanted to be a player in Australia. May be the new world will be QF, NZ, JQ and Rex
Hope so. ANZ is a great airline.

[ozbiggles]

Well Sharp and chairman Hai played the government for fools didn’t they. Qantas had to borrow against assets, VA went into admin.....Rex with their connections got the government to subsidise them, well played. Let’s see how well they can play CASA to get a high capacity jet AOC up and running. I’m sure as long as they run a jet between Wagga and Canberra they will be in business.

[BNEA320]

QUOTE

Mr Sharp said Rex was confident of being able to fly in and out of Sydney because it was the third-largest holder of slots at Sydney Airport. “We will bring a much lower cost base to the capital city routes,” he said.

So if they give some of those slots of SYD to new jet operation, where will some of the saabs go ? Bankstown ?

[ozbiggles]

Pretty sure they have those slots to guarantee regional flights into Sydney, not more jet slots....but as we see Mr Sharp has good connections.

[Maggie Island]

QUOTE

Mr Sharp said Rex was confident of being able to fly in and out of Sydney because it was the third-largest holder of slots at Sydney Airport. “We will bring a much lower cost base to the capital city routes,” he said.

So if they give some of those slots of SYD to new jet operation, where will some of the saabs go ? Bankstown ?

Call me optimistic but I don’t think slots are going to be a major issue on the east coast for a good few years.

[galdian]

IF VA2 doesn't happen there'll be a ****load of SY slots the airport will gladly allocate to anyone to get the $$ rolling.

Like an unused seat on a flight an unused slot is an asset wasted and lost.

[Office Update]

This would be ideal for CASA to get their teeth into!
Instead of working to resolve their issues with Glenn Buckley, they really can say we are too busy with a high capacity AOC application to worry about Glenn.

[BNEA320]

This would be ideal for CASA to get their teeth into!
Instead of working to resolve their issues with Glenn Buckley, they really can say we are too busy with a high capacity AOC application to worry about Glenn.
deputy chairman John Sharp is ex transport minister in howard govt. He knows the ins & outs of Canberra. Probably done the rounds already. CASA won't be an issue, getting the public to fly them will, if Qantas is allowed to dump millions of seats at below cost, before they get off the ground.

[VH DSJ]

Could Rex be considering the Ejet E170/190 over the 737/A320? The Ejet E170 would certainly be a good replacement for their ageing SF340 fleet with plenty of first generation Ejets now available cheaply. The E190 has the legs to do PER-MEL and Air North uses the E170 to do Toowoomba - MEL so BNE -MEL is no problem.

[Green.Dot]

The Ejet E170 would certainly be a good replacement for their ageing SF340 fleet with plenty of first generation Ejets now available cheaply.

How is the E170 a good replacement for a SAAB340? You won’t get it into half the strips the SAAB goes. It burns heaps more fuel and is in a totally different class re pax loads.

Its almost like trying to compare an A380 to a B737.

One thing Rex currently do well is break even off a route with minimal pax because they own their aircraft and the SAAB is very fuel efficient.

[non_state_actor]

deputy chairman John Sharp is ex transport minister in howard govt. He knows the ins & outs of Canberra. Probably done the rounds already. CASA won't be an issue,

Well that all depends on the power of the QF lobby. I would feel aggrieved if I were Alan Joyce and the government gave REX some public funds for Regional Operations which they then went and spent on setting up a domestic competitor.

[normanton]

I'm picturing the news articles already of Rex complaining about the competition from Qantas.

[BNEA320]

I'm picturing the news articles already of Rex complaining about the competition from Qantas.
qantas well known for dumping seats below cost, which is still illegal, but hard to prove.

[Checklist Charlie]

Perhaps someone could refresh my memory surrounding the PelAir ditching at Norfolk Island. Were any of the Rex senior execs around at that time with the ability to stick their fingers into the outcome of any report or staffing matters?

Any one recall, my memory is not that 'sharp'.

CC

[Buttscratcher]

Well that all depends on the power of the QF lobby. I would feel aggrieved if I were Alan Joyce and the government gave REX some public funds for Regional Operations which they then went and spent on setting up a domestic competitor.

Good point, sir!

[Ken Borough]

qantas well known for dumping seats below cost, which is still illegal, but hard to prove.

Either put up or STFU.

[Blueskymine]

qantas well known for dumping seats below cost, which is still illegal, but hard to prove.

Which is why qantas is so profitable and the competition that had a lower cost base wasn’t. Because they sold ‘all’ their seats above cost.

Hmmm

[airdualbleedfault]

This is quite possibly the funniest 5hit I have read on the Internet, Ever. Thanks Wrecks, I needed a good larf :O:O:O

[normanton]

qantas well known for dumping seats below cost, which is still illegal, but hard to prove.
Lol. Delusional.

[Section28- BE]

Perhaps someone could refresh my memory surrounding the PelAir ditching at Norfolk Island. Were any of the Rex senior execs around at that time with the ability to stick their fingers into the outcome of any report or staffing matters?

Any one recall, my memory is not that 'sharp'.

CC

Narr- 'Clecklist', not 'that' Sharpe, myself......... and for that am truly sorry, can't get the data onshore/to mind..............

Anyhoo- 'Park' 'em wheels down and 'all' shall be well.............. apparently!!

Rgds
S28

[gordonfvckingramsay]

Are Rex suggesting that they are going to launch into jets and just like that “take it to Qantas”, and have all that done in a few months? I guarantee this is a piss take.

[Going Nowhere]

Why are some assuming that Rex want anything to do with VA or the crew, frequent flyer points, etc.

All they need is the jet on their AOC and then they can employ whatever crew they want.

There’s no guarantee many VA crew will get a gig on this. It’ll all go to whoever is willing to work for the T&C’s on offer

[1a sound asleep]

Jetstar will eat them alive before the end of the first month

[KABOY]

Jetstar will eat them alive before the end of the first month

Here' s an idea!

Rex buys Velocity, sets up an airline with Velocity's client base and starts their own gig. And.......they have a loyalty base.

[Global Aviator]

REX makes sense, well in my eyes.

Go the Airbus route, A320/1/NEO etc.

Then the next step for SAAB replacement is... ATR...

[Turnleft080]

Jetstar will eat them alive before the end of the first month

yibbida yibbida that is all.

[ozbiggles]

So all the 340 crews will bid over to jets with no jet experience and all the out of work RPT pilots will backfill the 340 spots or they will get all new recruits or out of work RPT pilots will take all the jet jobs.....It would be fun to watch.

[BNEA320]

Which is why qantas is so profitable and the competition that had a lower cost base wasn’t. Because they sold ‘all’ their seats above cost.

Hmmmcan't stop laughing.

$19 fares ? Must be $18 above costs surely.

Qantas is an incredibly high cost airline.

[On eyre]

can't stop laughing.

$19 fares ? Must be $18 above costs surely.

Qantas is an incredibly high cost airline.

Obviously you haven’t heard of “loss leaders” O wise one.

[George Glass]

can't stop laughing.

$19 fares ? Must be $18 above costs surely.

Qantas is an incredibly high cost airline.

I don’t know why people keep saying that.
Since the shutdown QF has been cheap and nasty.
Talk to any employees of the company outside pilot ranks and see what they say.
QF will eat them alive.
To people of a certain age this is just the latest iteration of the weird mad world of aviation.
To make a small fortune in aviation start out with a big one.
Why , oh why do people keep doing it?

[Traffic_Is_Er_Was]

I think the Jetgo ground equipment is probably still sitting around at various airports from the last time someone had a go with a "regional jet". I'm pretty sure Rex only runs out of BNE because it's got the government contracts. It doesn't go anywhere people actually live, or interstate.

[SHVC]

REX makes sense, well in my eyes.

Go the Airbus route, A320/1/NEO etc.

Then the next step for SAAB replacement is... ATR...

I would think Rex would be smart enough to stay away from an ATR.

[Ragnor]

As if REX will spend anymore money on infrastructure they are only where they are now because Mr Kim doesn't spend money on anything now.

[Paragraph377]

I think the Jetgo ground equipment is probably still sitting around at various airports from the last time someone had a go with a "regional jet". I'm pretty sure Rex only runs out of BNE because it's got the government contracts. It doesn't go anywhere people actually live, or interstate.
You don’t really seem to know very much do you? You say “I think” and “I’m pretty sure”. That hardly provides any merit of confidence in your actual understanding or your comments on the matter. Maybe you “think” and are “pretty sure” that the tooth fairy is real also?
And you said this regarding REX;

“It doesn't go anywhere people actually live, or interstate”.

Really? Aren’t they based in NSW? Don’t they fly also in QLD, SA, WA and VIC. And to places such as Cairns, Townsville and Brisbane? I would hardly call that ‘not flying interstate’ or ‘not going to where people actually live’!

Bud, I don’t think you are well. Please have a good rest, take in some imagine take some lithium pills.

[Ladloy]

So all the 340 crews will bid over to jets with no jet experience and all the out of work RPT pilots will backfill the 340 spots or they will get all new recruits or out of work RPT pilots will take all the jet jobs.....It would be fun to watch.
Surely they will recruit all the type rated pilots in Aus who currently don't have jobs, slap up a flimsy agreement and go from there.

[LostWanderer]

Surely they will recruit all the type rated pilots in Aus who currently don't have jobs, slap up a flimsy agreement and go from there.

Probably. Perhaps pick up some experienced guys to the left seats and move some SAAB guys to the right seat of the jet.
Still can't see this getting off the ground for a long time yet, if at all.

[Global Aviator]

So all the 340 crews will bid over to jets with no jet experience and all the out of work RPT pilots will backfill the 340 spots or they will get all new recruits or out of work RPT pilots will take all the jet jobs.....It would be fun to watch.

We all know that wouldn’t happen, just not feasible to start. However what it would do is give the 340 guys the next step. Yes I’m wading into muddy waters. To start fast you need qualified drivers, you have them. Does Rex have a seniority list? Then it comes into play. Yes might seem unfair at the start but one has to be realistic.

[krismiler]

Regional jet pilots transition onto airliners quite easily, turboprop pilots understandably take longer. A realistic timeframe would be at least two years in the right seat before a Saab Captain would be ready for command on an A320/B737. CASA and the insurance company would need to be satisfied with the program as well. There would also be a need for experienced first officers to baby sit the new upgrades for a month or two after release to line. Certain airstrips may have restrictions on them such as minimum time in command or on type before operating there. There would be a further wait while REX pilots gained the experience necessary for check and training approval.

They would need to have "expats" on the payroll for a fairly long time.

[machtuk]

I recall all the Kendall/Ansett/RJ fiasco! That was entertaining this maybe as well?

[Ladloy]

We all know that wouldn’t happen, just not feasible to start. However what it would do is give the 340 guys the next step. Yes I’m wading into muddy waters. To start fast you need qualified drivers, you have them. Does Rex have a seniority list? Then it comes into play. Yes might seem unfair at the start but one has to be realistic.
I also can't imagine many Saab captains making the leap unless the Jet FO pay > Saab capt pay either.

[Lookleft]

People have very short memories. Impulse went from 1900s to 717s without too much trauma. Seniority and who will fly what was all sorted out by the hours requirements and CASA. So what happened? A lot of expats who had flown domestically with IPEC,TAA and Ansett until the end of the 80's came home after a decade in exile. What happened to the existing pilots and their demands for jet seats? They waited and gained jet experience like Rex pilots will have to. When the operation matures and things settle down then the seniority list will reassert itself. Its not like this is a brand new concept and has never been tried before.

[Alfie.floor]

Regional jet pilots transition onto airliners quite easily, turboprop pilots understandably take longer. A realistic timeframe would be at least two years in the right seat before a Saab Captain would be ready for command on an A320/B737. CASA and the insurance company would need to be satisfied with the program as well. There would also be a need for experienced first officers to baby sit the new upgrades for a month or two after release to line. Certain airstrips may have restrictions on them such as minimum time in command or on type before operating there. There would be a further wait while REX pilots gained the experience necessary for check and training approval.

They would need to have "expats" on the payroll for a fairly long time.

no need for expats plenty of experienced unemployed jet drivers around!

[travelator]

The only consideration for Rex is $$. If they are going to do this it’s not for the benefit of the pilot group, this is never a factor. There are unfortunately a bunch of boys and girls that are highly qualified and experienced on narrow body jets currently unemployed. 10 jets would mean around 140 pilots. They can easily find these guys already endorsed. Why would they hire 140 pilots, endorse and train them on Saab’s just so they can “promote” 140 existing and non endorsed pilots.

280 endorsements as opposed to 0.

[Mach E Avelli]

Surely they will recruit all the type rated pilots in Aus who currently don't have jobs, slap up a flimsy agreement and go from there.

What he said. Why would they do anything else? The pilot management policy would be simply based on economics, insurance requirements and getting quick approvals from CASA. Their success in getting jets onto their AOC in a short time frame will hinge upon hiring the right technical expertise and throwing only as much money at it as is needed to be 'compliant'. That won't include a gold-plated pilot training budget.
Expect them to run two completely separate pilot divisions with no transfer from turboprop to jet until there are no more type rated experienced jet pilots prepared to work for whatever conditions they offer. And they will milk the current employment situation for every dollar they can. As for 'seniority' - hell will freeze over before that happens!
Not saying this is a very nice way to do business, but better the devil you know than the one you don't. At least Rex knows how to turn a profit where so many others have failed.

[TWT]

RexJet....

[Rabbitwear]

Should the government be given a stake in Rex for the cash they gave them !

[Lookleft]

There has been a lot of emotionally charged postings on various platforms about Rex giving back the Government subsidy. That subsidy was not the sole preserve of Rex even though they may have been a major beneficiary. I am sure that QLink got some of that money as would Sharp. The domestic jet operators also got a subsidy to maintain a minimum level of service which is also helping Virgin. I don't see anyone suggesting that if Virgin come out of VA that they should pay back the subsidy money. I doubt that Rex are going to be putting any jets on the network until 1) Domestic travel restrictions are lifted and 2) They actually have a HCAOC which is not a tick and flick exercise. I can't see jets happening until at least 12 months.

[galdian]

RexJet....

Nah - "Sikkem Rex" would bring back memories for connoisseurs of tasteful ladies underwear ads from years ago! ;)

Cheers

[Colonel_Klink]

There has been a lot of emotionally charged postings on various platforms about Rex giving back the Government subsidy. That subsidy was not the sole preserve of Rex even though they may have been a major beneficiary. I am sure that QLink got some of that money as would Sharp. The domestic jet operators also got a subsidy to maintain a minimum level of service which is also helping Virgin. I don't see anyone suggesting that if Virgin come out of VA that they should pay back the subsidy money. I doubt that Rex are going to be putting any jets on the network until 1) Domestic travel restrictions are lifted and 2) They actually have a HCAOC which is not a tick and flick exercise. I can't see jets happening until at least 12 months.

I agree with the general gist of what you have said here...

But QF and VA haven’t received that government money, and then tapped the shoulders of investors to essentially start a whole new business venture.

And the other thing of concern is the disproportionate amount that Rex has received. If you compare what Rex has received in total subsidies compared to QF and VA in relation to Total revenues, it’s staggering.

I would liken this to QF now coming out and ordering Project Sunrise aircraft.

To be quite honest, this whole thing stinks. Some hard questions need to be asked of the Deputy PM, especially considering the Government doesn’t pick winners or losers.

[havick]

Regional jet pilots transition onto airliners quite easily, turboprop pilots understandably take longer. A realistic timeframe would be at least two years in the right seat before a Saab Captain would be ready for command on an A320/B737. CASA and the insurance company would need to be satisfied with the program as well. There would also be a need for experienced first officers to baby sit the new upgrades for a month or two after release to line. Certain airstrips may have restrictions on them such as minimum time in command or on type before operating there. There would be a further wait while REX pilots gained the experience necessary for check and training approval.

They would need to have "expats" on the payroll for a fairly long time.

What a load of garbage. In the US 1500 hour C172 pilots end up in the left seat of an Embraer 145 or 175 or CRJ within about 12 months of being checked to line if they fly their butt off, without problems.

[krismiler]

I doubt the Civil Aviation Authority want a Coglan Air flight 3407 happening in Australia and would insist on a higher experience level, and particularly if Airbus would want more time on type. Given that there are likely to be plenty of experienced pilots out of work it would be difficult for REX to justify any dispensation on the basis that they can’t find appropriate crew.

Thanks for the warning, I’ll certainly avoid regionals if I need to get somewhere in the USA.

[Pundit]

There is a market, there are plenty of narrow body VH registered jets available, and there are plenty of well qualified pilots packing shelves. JQ took in instant captains when they converted to A320's. If you want a place in the future, forget old fashioned contacts and seniority rules.

Rex whatever it is called, will happen by this time next year. And looking at the performance of the VA Administrator, I think the market will be QF, ANZ, JQ and RexNeo.

Intra Australia travel and tourism will happen and it will expand to the NZ, Singapore, Korea, Japan bubble fairly quickly.

[ozbiggles]

Amazing, everything you just said then was wrong

[Stationair8]

Shares are out of trading halt, and up 30% for the day.

Proposed starting date for jets if it proceeds is March 2021.

She is all go at Rex, NSW Air Ambulance contract, still running regional services and now possibility of jets in the equation.

[BNEA320]

Shares are out of trading halt, and up 30% for the day.

Proposed starting date for jets if it proceeds is March 2021.

She is all go at Rex, NSW Air Ambulance contract, still running regional services and now possibility of jets in the equation.
& if V2 doesn't happen, that March date could become September ? using VA aircraft on very cheap leases, with VA crews/staff.

[Pundit]

September would be tight even with CASA assistance to get the jets on the AOC.

[BNEA320]

There is a market, there are plenty of narrow body VH registered jets available, and there are plenty of well qualified pilots packing shelves. JQ took in instant captains when they converted to A320's. If you want a place in the future, forget old fashioned contacts and seniority rules.

Rex whatever it is called, will happen by this time next year. And looking at the performance of the VA Administrator, I think the market will be QF, ANZ, JQ and RexNeo.

Intra Australia travel and tourism will happen and it will expand to the NZ, Singapore, Korea, Japan bubble fairly quickly.
agree with above, but not ANZ. JQ for leisure market, but if Rex has lower costs, they could do an Air NZ & be both full service & low cost.

Don't know why Rex would want to go outside of golden triangle Mon-Fri peak hour, except maybe to PER & then ADL after golden triangle bedded down & they then need more aircraft.

To do triangle & to make money need frequency in peak hour Mon-Fri. Aircraft could do other flights during middle of the day, on Saturdays & Sunday am, but as Neeleman said recently re breeze, if the aircraft are incredibly cheap, don't need to fly them hard. Allegiant bought their initial MD80s for about USD$1m apparently, spent SFA on them & parked them at quiet times of week rather than try & give away seats. (they did fly a lot of flying for the vegas casinos who think subsidised the flights into Vegas from 1 horse towns, no one had ever heard of, so the casinos "trapped" punters at Vegas for a week, as only 1 flight a week) Cheap flight, cheap hotel & made big dollars out of casino.

[Global Aviator]

Nah - "Sikkem Rex" would bring back memories for connoisseurs of tasteful ladies underwear ads from years ago! ;)

Cheers

Glad I’m not the only one with the slightly twisted mind!

[machtuk]

REXJET, coming to a city near you!:O

[MelbourneFlyer]

I have a contact who says that Rex already has a lease on ten B737s lined up, they're now just waiting for the money and then will push ahead with necessary approvals.

[ozbiggles]

So they did that before making announcements to the market? Really.....
And didn’t make any mention of it in their actual announcement.....
Your ‘friend’ is full of it

[PPRuNeUser0161]

REX, the next virus to affect aviation in Australia!

SN

[bazza stub]

I have a contact who says that Rex already has a lease on ten B737s lined up, they're now just waiting for the money and then will push ahead with necessary approvals.

They don’t have anything then.

[DanV2]

I have a contact who says that Rex already has a lease on ten B737s lined up, they're now just waiting for the money and then will push ahead with necessary approvals.

Oh dear...

[BNEA320]

Oh dear...
I didn't post this & have no idea who tt738 or mel flyer are

[ozbiggles]

Well that was a quick thought bubble from Rex....and now they have made enemies in the Federal and Queensland State governments, Its been a big couple of days. Might need to raise all that money now for their own survival rather than big toys,

[Ragnor]

Well that was a quick thought bubble from Rex....and now they have made enemies in the Federal and Queensland State governments, Its been a big couple of days. Might need to raise all that money now for their own survival rather than big toys,

With QLD looking to own their own peice of aviation what does that mean for JQ, QF Alliance hevilift etc, will VA get all the charters and concessions QLD. Like someone posted in another thread about Qantas, I hope the ACCC are watching this with a magnifying glass.

[ozbiggles]

You mean instead of Qantas getting all the government contracts and travel? A lot of pollies will have to cash in their Qantas points now

[logansi]

Name change needed? Metropolitan Express.

[Ragnor]

You mean instead of Qantas getting all the government contracts and travel? A lot of pollies will have to cash in their Qantas points now

If you read what I posted, I meant a few other airlines also. I wonder how QLD public feel about the state Gov doing this also.

[ozbiggles]

Doesn’t matter what the Queensland people think, the politicians already have their money!
I think Alliance will do alright, might have to get rid of one pesky share holder. Heavilft in a different market, JQ will be fine as long as QF foot the bill. Rex on the other hand.....

[chookcooker]

With QLD looking to own their own peice of aviation what does that mean for JQ, QF Alliance hevilift etc, will VA get all the charters and concessions QLD. Like someone posted in another thread about Qantas, I hope the ACCC are watching this with a magnifying glass.

says the QF employee who has stated he’s happy for qantas to get government assistance even though virgin didn’t

Not really, Virgin is a loss making business, Qantas makes money I wouldn't have a problem the government loaning money to QF. After all it is making a profit and they could pay it back.

[InZed]

agree with above, but not ANZ. JQ for leisure market, but if Rex has lower costs, they could do an Air NZ & be both full service & low cost.

Don't know why Rex would want to go outside of golden triangle Mon-Fri peak hour, except maybe to PER & then ADL after golden triangle bedded down & they then need more aircraft.

To do triangle & to make money need frequency in peak hour Mon-Fri. Aircraft could do other flights during middle of the day, on Saturdays & Sunday am, but as Neeleman said recently re breeze, if the aircraft are incredibly cheap, don't need to fly them hard. Allegiant bought their initial MD80s for about USD$1m apparently, spent SFA on them & parked them at quiet times of week rather than try & give away seats. (they did fly a lot of flying for the vegas casinos who think subsidised the flights into Vegas from 1 horse towns, no one had ever heard of, so the casinos "trapped" punters at Vegas for a week, as only 1 flight a week) Cheap flight, cheap hotel & made big dollars out of casino.

Based on the conversations that the NZ unions and CEO have had over live streams and emails...

I think you might be in for a surprise if you think AirNZ won’t push out into Australia, in a situation where there is demand in the AU market and NZ has surplus aircraft and staff.

They currently operate to eight destinations and have lounge agreements, ground agents and service contracts in SYD MEL BNE OOL MCY CNS ADL PER....

[ozbiggles]

What demand is there going to be in Aus?
There might be demand from the locals both sides of the pond but there won’t be any other tourists to fill the seats from overseas that there used to be. I guess then if they do venture in all the airlines can easily do social distancing. The Trans Tasman will be good for that as everyone weighs in.

[Ragnor]

says the person who has stated he’s happy for qantas to get government assistance even though virgin didn’t




Interesting, so you would be happy to tip your own money in a business that runs at a loss?

[chookcooker]

Interesting, so you would be happy to tip your own money in a business that runs at a loss?

yes I’m sure your double standards are purely about ROI

[ozbiggles]

Everyone is putting money into Qantas at the moment and it’s making a loss?
And you have to admire how they are getting everyone to burn up their leave and use jobkeeper to pay for it, brilliant.

[Chad Gates]

Gday Oz. Using leave is a choice. I’m not using any leave, and getting job keeper, so for me at least QF isn’t using Jobkeeper to pay for it. If someone in virgin is using leave, do virgin pay Jobkeeper on top? If so, that’s a pretty good deal.

[chookcooker]

Gday Oz. Using leave is a choice. I’m not using any leave, and getting job keeper, so for me at least QF isn’t using Jobkeeper to pay for it. If someone in virgin is using leave, do virgin pay Jobkeeper on top? If so, that’s a pretty good deal.
that’s good to hear, people here we’re saying QF we’re only passing it on if leave was taking which sounded farked.

[ozbiggles]

Hi Chad, everyone else in their area. It isn’t a choice for them. I don’t know the VA story on this, it may be the same.

[Paragraph377]

September would be tight even with CASA assistance to get the jets on the AOC.
CASA don’t “assist” the operator. CASA are the Regulator and their role is to ensure that an Operator meets the regulations and standards as set out in the Civil Aviation Act. They audit, inspect and give the final approvals. The Operator does all the work, CASA just tick that all the boxes have been filled out correctly. But you probably didn’t know that pundit as you only fly kites and listen to aircraft calls on your radio
scanner!

[Chad Gates]

I thought this thread was about Rex?


You’re absolutely right. Must be as it seems every other thread is about VA, I got mixed up. Apologies .

[Traffic_Is_Er_Was]

You don’t really seem to know very much do you? You say “I think” and “I’m pretty sure”. That hardly provides any merit of confidence in your actual understanding or your comments on the matter. Maybe you “think” and are “pretty sure” that the tooth fairy is real also?
And you said this regarding REX;

“It doesn't go anywhere people actually live, or interstate”.

Really? Aren’t they based in NSW? Don’t they fly also in QLD, SA, WA and VIC. And to places such as Cairns, Townsville and Brisbane? I would hardly call that ‘not flying interstate’ or ‘not going to where people actually live’!

Bud, I don’t think you are well. Please have a good rest, take in some imagine take some lithium pills.
Wow, you don't like your buttons being pushed do you? Ever heard of sarcasm? Did I hit a nerve in the other thread? My comments re their routes were about their BNE base. Their QLD ops are protected and subsidised by the QLD government. They can fly around practically empty if necessary. They don't have to compete in QLD. They don't run between the major population centres. They are not stupid enough to take on QF, QLink et al.
https://cimg7.ibsrv.net/gimg/pprune.org-vbulletin/526x387/rexthumb1_603318de50652f8ce6379b905168287b16f59e67.jpg

[slice]

With Virgin you have a choice for jobkeeper. You can burn Annual/Long Service leave at up to 50% per roster (ie up to14 days in 28) and the company credits you $1500 (jobkeeper) worth of leave. So for example as a Captain to be paid 14 days of Annual / Long Service leave in a roster only about 11.7 days of leave (ie 14 - whatever $1500 works out to be worth in days paid) is debited against your leave total OR burn no leave and just take the straight $1500 jobkeeper (minus tax of course).

[Paragraph377]

My comments re their routes were about their BNE base. Their QLD ops are protected and subsidised by the QLD government. They can fly around practically empty if necessary. They don't have to compete in QLD. They don't run between the major population centres. They are not stupid enough to take on QF, QLink et al.
Why didn’t you say that in the first place? Yes of course, that’s right, because you spoke without knowledge and then after getting called out you had to go away and do your research and then come back and articulate yourself whilst also covering yourself. And then after all of that, you tell us stuff that we’ve already known for several years! Where have you been all this time - Siberia, Prison, the Antarctic, a coma??

[Mach E Avelli]

With Virgin you have a choice for jobkeeper. You can burn Annual/Long Service leave at up to 50% per roster (ie up to14 days in 28) and the company credits you $1500 (jobkeeper) worth of leave. So for example as a Captain to be paid 14 days of Annual / Long Service leave in a roster only about 11.7 days of leave (ie 14 - whatever $1500 works out to be worth in days paid) is debited against your leave total OR burn no leave and just take the straight $1500 jobkeeper (minus tax of course).
That just about gets equal top points for non sequitur of the week.
Can you, chookcooker and ozbiggles PLEASE either stay on thread or p!ss off to one of the other 8 or so threads applicable to VA & QF and keep this clear for those wishing to engage in rational (or even irrational) discussion about R. E. X.

[Mach E Avelli]

CASA don’t “assist” the operator. CASA are the Regulator and their role is to ensure that an Operator meets the regulations and standards as set out in the Civil Aviation Act. They audit, inspect and give the final approvals. The Operator does all the work, CASA just tick that all the boxes have been filled out correctly.

Indeed CASA provides no assistance in the AOC application process; more like they drag it out by having a caste of thousands peruse every statement in every document submitted. This perusal goes well beyond mere ticking of boxes, with individuals within CASA rejecting words, paragraphs and chapters in order that their own 'pet' versions be incorporated.
Having been involved in a start-up high capacity jet AOC where we were careful to cross reference everything against the regulations, it still took a team of us 8 months to get the paperwork passed. Fortunately, we got through with just one proving flight. Then CASA wised up and made other even better resourced applicants who followed do several proving flights.
REX is starting with some advantage in that they have an AOC, so this would be a variation application, but even so it is quite likely that CASA will drag out any approval to next year. A September 2020 start date would be highly fanciful, Christmas 2020 would be barely feasible if the application was made next month with manual suite attached, postholders nominated and aircraft identified by serial number.

[Paragraph377]

Indeed CASA provides no assistance in the AOC application process; more like they drag it out by having a caste of thousands peruse every statement in every document submitted. This perusal goes well beyond mere ticking of boxes, with individuals within CASA rejecting words, paragraphs and chapters in order that their own 'pet' versions be incorporated.
Having been involved in a start-up high capacity jet AOC where we were careful to cross reference everything against the regulations, it still took a team of us 8 months to get the paperwork passed. Fortunately, we got through with just one proving flight. Then CASA wised up and made other even better resourced applicants who followed do several proving flights.
REX is starting with some advantage in that they have an AOC, so this would be a variation application, but even so it is quite likely that CASA will drag out any approval to next year. A September 2020 start date would be highly fanciful, Christmas 2020 would be barely feasible if the application was made next month with manual suite attached, postholders nominated and aircraft identified by serial number.
And the favourite CASA chestnut is the use and definition of the word ‘intent’ (Lead Balloon should be along shortly, he loves the legal jargon). I can only picture you Mach, diligently writing manuals and procedures, cross checking them against the Regs only to be trumped by CASA when they decide to apply their own version of intent to whatever you have submitted. I feel your pain my friend.

Regardless, REX will get a couple of free goals due to who is managing the ‘sharp end’ of their company. Would just be nice to see pilots flying and aircraft burning Avgas and Jet A1 again.

[neville_nobody]

Will their FMS pass muster under the current arrangements? They made alot of noise about moving off CAO 48 at the time with protests, alot of political noise and pressure on the regulator.

[Ladloy]

Will their FMS pass muster under the current arrangements? They made alot of noise about moving off CAO 48 at the time with protests, alot of political noise and pressure on the regulator.
Haha what FMS?!?! They realised it wouldn't work with current rostering of min rest overnights and never changed.

[neville_nobody]

So they are going to operate domestic jets with no FMS?? I feel some unexpected delays to the AOC coming their way............

[Lookleft]

CASA have quietly moved the implementation of CAO48.1 to April next year because of corona so for the moment Rex don't have to worry about FRMS.

[KRUSTY 34]

CASA have quietly moved the implementation of CAO48.1 to April next year because of corona so for the moment Rex don't have to worry about FRMS.

How many times has CASA deferred it now!?

[neville_nobody]

That was because REX kick up a stink and played the whole 'country card' saying that FMS doesn't work for Regional Operations, the days are shorter etc etc.

Will be hard to try that on working 12 hours a day in a 737 or 320 but I am sure they will try!!

[Pundit]

Thank you Para, the regulatory process is clear cut, the political process prompting isn't!

My bet is still ANZ into the market. They have a good product and friendly staff who deliver a consistent standard. They would be a serious competitor for Qantas not a revamped VA.

[Paragraph377]

My bet is still ANZ into the market.
You shouldn’t make bets. The last time you bet someone was when you were plane spotting at Brisbane airport and you made a bet that a 747-400 was on short finals and it turned out to be a Bell 505 JetRanger!!! Sucks to be you.....

[ozbiggles]

Oh Para
5,4,3,2....

and for Machy Rex, Rex, Rex ,Rex

[normanton]

You shouldn’t make bets. The last time you bet someone was when you were plane spotting at Brisbane airport and you made a bet that a 747-400 was on short finals and it turned out to be a Bell 505 JetRanger!!! Sucks to be you.....
hahahaha! !

[Traffic_Is_Er_Was]

Why didn’t you say that in the first place?
Because I though it was patently obvious. I forgot for a second I was having a battle of wits with someone who is only half-armed.

[Section28- BE]

Ex Para-

'that a 747-400 was on short finals and it turned out to be a Bell 505 JetRanger!!!'

Reckon, the 'Problem' right there was/is the Allison C-20 engine contained therein...... now known as the Rolls-Royce M250, (US military designations T63 and T703) - Bull-****e, Rolls did 'not' make it!!!! and it does have years on 'it'.......

ex Wikipedia:

Design and Development-
In 1958, the Detroit Diesel (https://en.wikipedia.org/wiki/Detroit_Diesel) Allison division of General Motors was chosen by the US Army to develop a new light turbine engine.........


Takes along time for 'it', to arrive and 'it' wont lift/do much at All for you, if 'one' does the temp/pressure density- performance on it, out here.......

Anyhoo- best go now...... (ohh- there is the C-30 in the LongRanger, but Not relevant to the point/discussion....)

Ta/Rgds all
S28- BE

[Denied Justice]

Mate - I don't know what you are smoking, but your posts are always extremely interesting :cool:

[Paragraph377]

Ex Para-

Reckon, the 'Problem' right there was/is the Allison C-20 engine contained therein...... - Bull-****e, Rolls did 'not' make it!!!! and it does have years on 'it'.......

ex Wikipedia:

Takes along time for 'it', to arrive and 'it' wont lift/do much at All for you, if 'one' does the temp/pressure density- performance on it, out here.......

Anyhoo- best go now...... (ohh- there is the C-30 in the LongRanger, but Not relevant to the point/discussion....)

Ta/Rgds all
S28- BE
And long live the Detroit Locker Diff my friend.

[Chris2303]

My bet is still ANZ into the market.

They wouldn't be able access the Government loan if they do anything within Australia

[Lapon]

Thank you Para, the regulatory process is clear cut, the political process prompting isn't!

My bet is still ANZ into the market. They have a good product and friendly staff who deliver a consistent standard. They would be a serious competitor for Qantas not a revamped VA.

Add to that a disastrous track record of previous attempts, and thier own problems at home. Wont happen.

[Pundit]

Certainly true re previous attempts, but let's see.

[InZed]

Add to that a disastrous track record of previous attempts, and thier own problems at home. Wont happen.

Because Jacinda locked down so quickly, NZ are already fully open and publicly running at 33% of our international market and almost 50% of our domestic market by next week.

They have cut costs and are almost making money already. I think they’re well placed to enter the AU market.

Ansett was a sinking ship before NZ got involved. Different management and different agenda now.

[MickG0105]

Ansett was a sinking ship before NZ got involved.
That would be roundly contradicted by the three consecutive years of AN profits before NZ took complete control.

[ozbiggles]

33% percent of your international network with what load factor and how much government backing to fly to get medical supplies and cargo?
So the guard police don’t come out, I don’t think we will see Rex and AirNZ mixing it up in Oz anytime soon

[Lookleft]

Ansett certainly was floundering before ANZ took over the second parcel of shares but it was definitely ANZ that scuttled it. For a perfect example of financial stupidity then look no further than ANZ buying 50 % when they were told they couldn’t afford it.

[Section28- BE]

Hmmmm-

'History' re-shapers/& sundry editors................. AYE!!!!!!

Cool- "what MickG" did, so 'very' gently/eloquently endeavor to place in front of 'you'.............

'IT' WAS ALL ABOUT getting RUPERT out- y'all should NOT have been there- bar Howard/Anderson and an 'anal' pretensions agin 50-odd percentile foreign equity............... Fcukin, VAH is 91% .............

Gawd, 'this' is SO counter-productive- great airline, WRONG Result........., you were 'Framed/Set-Up"............., never going to work!!!!!

Sorry- gone now......
Rgds all
S28- BE

[wheels_down]

So is this still going to happen if Virgin gets up in much same network as it had before?

[InZed]

Hmmmm-

'History' re-shapers/& sundry editors................. AYE!!!!!!

Cool- "what MickG" did, so 'very' gently/eloquently endeavor to place in front of 'you'.............

'IT' WAS ALL ABOUT getting RUPERT out- y'all should NOT have been there- bar Howard/Anderson and an 'anal' pretensions agin 50-odd percentile foreign equity............... Fcukin, VAH is 91% .............

Gawd, 'this' is SO counter-productive- great airline, WRONG Result........., you were 'Framed/Set-Up"............., never going to work!!!!!

Sorry- gone now.....
Rgds all
S28- BE

???What is this guy even talking about???

Anyway back onto the topic Section28- BE , NZ has the money or loan ability to invest into Rex, and it could be safe way to get into the Australian market right now.

Potentially unlikely. But possible. Anything is possible right now.

[ScepticalOptomist]

Hmmmm-

'History' re-shapers/& sundry editors................. AYE!!!!!!

Cool- "what MickG" did, so 'very' gently/eloquently endeavor to place in front of 'you'.............

'IT' WAS ALL ABOUT getting RUPERT out- y'all should NOT have been there- bar Howard/Anderson and an 'anal' pretensions agin 50-odd percentile foreign equity............... Fcukin, VAH is 91% .............

Gawd, 'this' is SO counter-productive- great airline, WRONG Result........., you were 'Framed/Set-Up"............., never going to work!!!!!

Sorry- gone now.....
Rgds all
S28- BE

Please take your meds. :}

[MickG0105]

For a perfect example of financial stupidity then look no further than ANZ buying 50 % when they were told they couldn’t afford it.
​​​​​​... and paying 36 percent more than what SQ had offered
​​​​​​... and funding the bulk of the purchase price by borrowing.

[InZed]

​​​​​​... and paying 36 percent more than what SQ had offered
​​​​​​... and funding the bulk of the purchase price by borrowing.

Okay Boomer. So this is a Rex thread.

Feel free to find one of the thousand other Ansett threads to post on. Otherwise keep it on topic, Boomer.

[ozbiggles]

Master caution, overuse of the ‘boomer’ word. Cue kids looking at you like you are a dag
And a quick rewind reveals who took us to all things Kiwi ay bro

[MickG0105]

Okay Boomer. So this is a Rex thread.

Feel free to find one of the thousand other Ansett threads to post on. Otherwise keep it on topic, Boomer.
Says you having raised Ansett in the first place!


Ansett was a sinking ship before NZ got involved.

[Traffic_Is_Er_Was]

Please take your meds.
I thiink he's been taking someone else's!

[73qanda]

They have cut costs and are almost making money already. I think they’re well placed to enter the AU market.
What....wait...they didn’t make too many people redundant too quickly did they?

[Chris2303]

NZ has the money or loan ability to invest into Rex

What money - it is broke!

[maxter]

How is the E170 a good replacement for a SAAB340? You won’t get it into half the strips the SAAB goes. It burns heaps more fuel and is in a totally different class re pax loads.

Its almost like trying to compare an A380 to a B737.

One thing Rex currently do well is break even off a route with minimal pax because they own their aircraft and the SAAB is very fuel efficient.


And they are mostly subsidised

[InZed]

What money - it is broke!

I think/know they’re fine. They’re also just about to role out a new business class product.

https://www.stuff.co.nz/business/industries/121524648/coronavirus-air-new-zealand-forges-ahead-with-new-business-class-cabin-despite-covid19-chaos

They’re priming themselves time be ready for a competition at the end of this. And they’re clearly trying to attract business travellers with money.

[ozbiggles]

52% government owned with another 900 million about to become equity and making hundreds/ thousands redundant? The only airline getting anywhere near that much government support in this neck of the woods is Rex....just to stray back onto topic.
I’m sure Jacinda and Winston can’t wait for AirNZ to expand overseas.

Using your logic why doesn’t Qantas and or Rex decide to fly in NZ as well? Well financed and lots of aircraft and crews......expand Jetstar Nz by a factor of 4 plus maybe?

[InZed]

Using your logic why doesn’t Qantas and or Rex decide to fly in NZ as well? Well financed and lots of aircraft and crews......expand Jetstar Nz by a factor of 4 plus maybe?

You missed a crucial difference here mate. Qantas-backed Jetstar NZ could do what they wanted with 70 jets. They could fly a dozen daily services if they wanted... but there’s f-all domestic demand in NZ (population of under 5mill and all). :D

Financial Year (ending 2019):
- Australian domestic = 61.040 million passengers
- New Zealand domestic = 4.618 million passengers

The Australian market is almost FORTEEN times the size of NZ’s, and thus, can handle more than two main airlines. :ugh:

I think REX has a very good shot at picking up some of that market, whomever is financially backing them.

[ozbiggles]

I think Australia keeps proving it has trouble with two main airlines let alone adding Tiger v3 Bought to us by Rex and Ansett v3 or is it 4? bought to us by AirNZ.
Don’t hurt your head on that wall:=

[Chris2303]

I think/know they’re fine. They’re also just about to role out a new business class product.

https://www.stuff.co.nz/business/industries/121524648/coronavirus-air-new-zealand-forges-ahead-with-new-business-class-cabin-despite-covid19-chaos

They’re priming themselves time be ready for a competition at the end of this. And they’re clearly trying to attract business travellers with money.

The money was probably 90% spent with just installation to go. As the article says it makes sense to do the configuration change whilst the airplanes are (more or less) grounded

[Chris2303]

52% government owned with another 900 million about to become equity and making hundreds/ thousands redundant? The only airline getting anywhere near that much government support in this neck of the woods is Rex....just to stray back onto topic.
I’m sure Jacinda and Winston can’t wait for AirNZ to expand overseas.

Using your logic why doesn’t Qantas and or Rex decide to fly in NZ as well? Well financed and lots of aircraft and crews......expand Jetstar Nz by a factor of 4 plus maybe?

Qantas tried, remember? They failed. Jetstar tried. They have partially failed after cancelling the Q300 flights and cutting back the A320 schedule late last year.

If NZ spend that money to fly Australia domestic there will be such a hue and cry to the extent that you have never seen before

[Lapon]

Qantas tried, remember? They failed. Jetstar tried. They have partially failed after cancelling the Q300 flights and cutting back the A320 schedule late last year.

If NZ spend that money to fly Australia domestic there will be such a hue and cry to the extent that you have never seen before

The Q300 operation was nothing more than a shot across the bow of ANZ for bankrolling VA at the time. More than coincidental that once once QF and NZ become friends again, the Q300s were withdrawn from NZs most lucrative regional routes

Remember when GK left left Nelson to head up Jetstar NZ and oversee the Q300 introduction?
Air NZ none too pleased and ultimately lost thier restraint of trade case against him in the employment court. I dont think anyone believed the the Jetstar Q300s were to be introduced as any sort of money making venture.

[JeTpLt]

Rex pinged by ASX for epic disclosure fail

Australian Financial Review - 22 May 2020 - 12:00am
Joe Aston

Country turbo-prop operator Regional Express Holdings announced in this publication on May 12 that it was pivoting to flying jets between capital cities. This assuredly material information was disclosed by Rex’s deputy chairman (and former federal Transport Minister) John Sharp in a freewheeling interview with Chanticleer columnist Tony Boyd. Problem is, Rex never thought to first alert its shareholders to this momentous news via the Australian Securities Exchange platform.

Just three minutes after the market opened at 10am last Tuesday, the ASX paused trading on Rex stock. 78 minutes later, the company requested (and was granted) a trading halt.

The following day, Rex issued a “response” to its own comments in this newspaper suggesting it was merely “considering the feasibility of commencing domestic [jet] airline operations”.

Just “considering” its feasibility? Hardly!

“We plan to lease a fleet of about 10 aircraft and hire new pilots, cabin crew and ground staff”, Sharp had told Boyd. “We are doing this because we see an opportunity”.

They’re doing this.

The May 13 response clearly didn’t satisfy the ASX (nor should it have), which fired off a “please explain” letter on May 18, whose tone one might characterise as incredulous.

Rex’s response to that – lodged late on Wednesday afternoon – was hardly any better. “In this particular instance Rex believed that information about possible city operations was not sufficiently definitive to constitute material information”.

Not sufficiently definitive?! Sharp had identified the cost ($200 million), the method of fundraising (“through the sale of new shares in Rex”), the number of planes (10), their routes (“The plan is to start flying between Sydney, Melbourne, Brisbane, Adelaide and Perth”), the timeline (“early next year”) and the number of interested parties (“we have been talking to half a dozen private equity and investment banking entities… and will narrow that down to one in the next three weeks or so”). Oh, and Rex has already discussed amending its flying license with the Commonwealth’s air safety regulator. Any more definitive and Rex would be selling tickets already!

The whole sequence lays out a stupendous failure of elementary public company compliance by the airline’s leadership, which is sharp in name only. Little wonder their propellers fall off.

Throw in Transport Minister Michael McCormack’s dismal performance throughout Virgin Australia’s COVID-19 collapse and be astonished by an entire, critical sector of the economy distorted by the tiny minds of the National Party.

[neville_nobody]

Looks like REX are 'all hat no cattle':} when it comes to getting jets. They've received a 'please explain' from the ASX over disclosing market sensitive information to a newspaper......:=

REX ASX Announcement (https://www.asx.com.au/asxpdf/20200520/pdf/44hzk56qxw21kz.pdf)

Dear SirAt the outset, we would like to assure ASX that Rex takes its continuous disclosure and other ASX obligations seriously and we have always tried to comply with our obligations.In response to your letter of 18 May 2020, we would like to provide the following information.On28April2020, Rex was approached unsolicited by the Australian Financial Reviewseeking an interview with Rex's Chairman to discuss Rex's success in regional aviation, as well as general aviation issues. The interview took place on 5May2020. During the course of that interview the journalist began to also ask about the domestic aviation sector and the Virgin situation. The AFR article was published on7May2020 and is reproduced in the Appendix.The article generated widespread interest in aviation circles and Rex was contacted by several parties wanting to discuss the future of domestic operations. In a follow-up interview by the same journalist from the AFR with the Deputy Chairman,John Sharp on 11May2020, thequestion was asked as to whether Rex was interested in taking any initiatives with regards to the VA situation. John replied that Rex had some confidential exploratory discussions with some parties about Rex’s possible interest in starting domestic operations. John said that Rex’sposition was that Rex felt that expanding its operations to cover domestic services could make commercial sense if there was a party willing to adequately fund the project. This resulted in the article being published in the AFR on 12 May2020.The Sydney Morning Herald article of 13 May2020was probably written on the back of the AFR article but Rex had nothing to do with that article.Rex has always tried to ensure that any material informationis disclosed to the ASX prior to the release to the general public. In this particular instance Rex believed that information about possible city operations was not sufficiently definitive to constitute material informationWe also took this view as we did not expect that information to have a material effect on our share price. In the almost 15 years since Rex has been listed on the ASX, we have observed that nothing much excites the stock market concerning Rex besides news of exceptional dividends or profits. Rex has made many announcements of contracts worth several hundreds of millions with barely a ripple on the share price. Another example is how the newspapers recently carried reports of Rex receiving an outright grant of over $50 Million from the Commonwealth and the share price did not even move. Given this background, we didn't expect our share price to move as it did.Given how the share price reacted to the news, it is evident that our judgement call was erroneous. We wish to reassure ASX that Rex will err on the side of caution in the future.While Rex believes its continuous disclosure program and training has been adequate, it will seek to make further improvements. In particular, we will be engaging our lawyers to conduct further training on Continuous Disclosure to the Board and Management Committee at the next Board meeting to ensurethat our obligations are clearly understood and complied with.We appreciate ASX raising this matter with us. We confirm that these responses have been authorised and approved by our Chairman and Deputy Chairman who have authority to respond to ASX on disclosure matters

[Section28- BE]

What 'Parra' said-

"Ando/Sharpie" (inter-changeable...., pick one), shall be all over 'it'/& shall fix......... IT!!!!

Bit like 'Angus' (Cayman's...) or the Ag Minister at this time............, Not the Constituency- that, 'they' give one flying Fcuk About!!!!

'They' talk days of Yore- but, have never been/and done- any of 'It'.

Have a good weekend
Rgds all
S28- BE

[Dragun]

I wonder how much bragging the chairman is doing now given he doesn't even seem to be able to have his upper management and company follow basic rules of being a listed company. He should be completely embarrassed by this. If that sort of specific information is not sufficiently definitive then I'm not sure anyone knows what is.

[Arnold E]

I,m not sure I understand what is going on here, does that mean that the possibility of REX getting into jets is all a load of cobblers and it was never a serious proposal ??

[wishiwasupthere]

No- one ‘has’ any IDEA, let ‘alone’ section 28 -BE or his ‘old MATE’ para who seems to have (——/#’@)$;#’ confused his former ‘NationAl party members.

[Pundit]

Arnold, I wonder if the Rex Board knows what is going on here?

[Arnold E]

Bit disappointing if that is the case, would have been interesting had it been a goer.

[27/09]

That would be roundly contradicted by the three consecutive years of AN profits before NZ took complete control.
Perhaps you need to review a bit history on this whole sorry saga.
https://www.pprune.org/archive/index.php/t-22042.html

[MickG0105]

Perhaps you need to review a bit history on this whole sorry saga.
https://www.pprune.org/archive/index.php/t-22042.html
I've read it previously. It's an interesting recounting of events but does nothing to contradict what I said. The indisputable fact of the matter is that Ansett was consistently returning profits prior to Air New Zealand buying the second half of the business. ANZ had held half the board positions prior to the the buy-out so any suggestion that they were in some way blindsided by anything arising out of the transaction is risible.

The very simple story is that ANZ bought what they couldn't afford, paid too much (36 percent more than what SQ had offered which in of itself should have rung alarm bells) and borrowed heavily to fund the purchase. Moreover, they had no plan for how they were going to integrate the two businesses and no CEO to drive the process. For the critical six months after the purchase the whole show was being run by Sir Selwyn Cushing, a mate of Ron Brierley's with zero airline experience. In centralising Treasury and Finance to Auckland ANZ moved cash out of AN while ladling in the liabilities associated with the borrowings undertaken to fund the purchase.

The rest is all fairly well known.

[wishiwasupthere]

I’m sure ASIC will accept that Mr Anderson “got his words muddled up”.

You’ll have to remind me what words ‘Mr Anderson’ said, unless of course you meant Mr Sharp? It’s ok to be wrong boomer.

[Arnold E]

Well you seem to be "in the know", so is the REX thing going to happen or not? I personally would be happy if it did

[wishiwasupthere]

Well you seem to be "in the know",

He’s not....

[j3pipercub]

I know a lot of us aren’t flying a the moment, but if you have a second imagine something.



Imagine those long, grinding years in GA, hoping to get into a legacy carrier, the flogging about in piston twins without radars in the muck, dreaming about the flight levels.



Imagine landing that airline gig. Set. For. Life. Like winning the lotto, but over 10 years. Replacing the ****box car, buying a house, starting the family. And what a life it is.



Imagine getting into that left seat after your time and really appreciating it all, the extra money with the responsibility and finally getting to run your own show and your own ship. Those early morning walk arounds you don’t have to do anymore, the approaches to almost minima, where you feel you heart skip a few beats because you get home after 17 hours instead of diverting. Imagine the feeling of cruising through the crew only lane with the liqueur that the wife loves, knowing you’ll be home within the hour.


Imagine, getting your Commercial license over 40 years ago. Imagine the changes, NDB homing, through to LNAV/VNAV approaches. Imagine the incredulity on the faces of the new SOs when you tell them that the IRS could be off by more than 10 miles after crossing the Pacific. Imagine the silent glee when you think back to how wild the Pacific could be on a night filled with storms and how nice it is to be in your bed in a country that isn’t your own but accepted you.


Imagine the overwhelmingly amazing career, with the downside of it being a terribly fatiguing vocation. But you get to spend your retirement catching up on sleep, maybe even chase the grass roots of the industry that you once fell in love with.


Imagine having millions of dollars worth of assets and settling in a country that you haven’t lived in for decades.


Then imagine coming onto an online forum and goading thousands of stood down and unemployed pilots. Imagine how sad an unfulfilling your retirement must be if you have to spend hours a day on a low tier message board reminding everyone you used to fly in the left hand seat


Just imagine.

j3

[das Uber Soldat]

Aagh, couldn’t resist contributing a meaningless comment.
Oh we know mate, we know.

[Section28- BE]

GeZuss 'H' Strewth 'Berealgetreal'- :eek::eek::eek:

Mate- do you have the appropriate PPE (Tin-Foil Hard-hat and Lead jocks.... etc.), to be loading 'that' stuff here......????

Extract here:
Most galling of all are Rex’s grand (and expensive) growth plans just four weeks after a $67 million taxpayer freebie saved it from bankruptcy.

There are, 'apparently' people whom 'Wish'/& Aspire to be in the Flight Levels with their hair on fire at +6.8 NM/min, at the end of this- and have the Hopes/'Wishes' and Prayers (plus 'some' Sharpie Action) from ScoMo.........., allegedly very helpful 'these' things are/be............!!!!!!

So, should your entrails not be smeared over faces, whilst 'they' chant over your shredded corpse- block-up 'Mate', bomby 'they' do get!!!!!!

Just can't do that!!!!- Apparently......!!!!!

But, yeah 'I' would- 'hearin' you!!!!

Could 'someone' merge this 'one': https://www.pprune.org/australia-new-zealand-pacific/630615-rex-trading-hold.html
Just for awareness/educational purposes- or not, as is your call/privilege.

Rgds all/be well
S28- BE

[Berealgetreal]

Hi mate deleted it, as you say may offend some. Ultimately, I didn’t write the article (AFR).
Don’t come on the forum much these days. All the best.

[Section28- BE]

'Berealgetreal'- Oh righteo gotya, mate......

Did not mean to suggest that, the article was not a Valid and Relevant chronology piece (published/& in the public domain) of the last 90-120 days- ex a news outlet of some substance.

AFR Link: https://www.afr.com/rear-window/deputy-pm-saved-rex-from-bankruptcy-20200524-p54vxa (https://www.afr.com/rear-window/deputy-pm-saved-rex-from-bankruptcy-20200524-p54vxa)

Extract here:-Rear Window

Deputy PM saved Rex from bankruptcy

Joe Aston (https://www.afr.com/by/joe-aston-hveym) Columnist

May 24, 2020 – 11.09pm

Last week on Squawk Box Asia, Regional Express Holdings chairman Lim Kim Hai tried justifying his recent dance moves on Virgin Australia’s grave in light of Rex’s own precarious standing up until its rescue by the federal government.

By way of refresher, Lim had lambasted Virgin’s (https://www.afr.com/rear-window/rex-virgin-animosity-steeped-in-aviation-history-20200512-p54s25) “extremely lax and extremely non-courageous” management and its “dysfunctional” board of directors back on May 7, adding that Rex was “probably the most qualified party in Australia to be able to run an airline like Virgin”. No flies on him.

A week later, Rex’s deputy chairman, John Sharp, announced to this newspaper the planned launch of Rex flights between Australian capital cities using 10 new jet aircraft, failing to first inform its own shareholders (https://www.afr.com/rear-window/rex-pinged-by-asx-for-epic-disclosure-fail-20200521-p54v3q) via the Australian Securities Exchange platform. The new foray, Sharp revealed, will necessitate the issue of $200 million of new Rex shares, a mere 172 per cent of its current $116 million market capitalisation!

CNBC anchor Sri Jegarajah was rightly incredulous. “Mr Lim, with all due respect, you’re calling into question how Virgin Australia was run but Rex was facing bankruptcy in March. How would you characterise your financial health right now and what’s changed since then?”

What’s changed since then is that Rex has been given $67.6 million (https://www.afr.com/companies/transport/rex-received-more-taxpayer-cash-than-qantas-virgin-combined-20200514-p54sty) by Sharp's National Party comrade, Deputy Prime Minister Michael McCormack, a full $53.8 million of that in untied grants, and more than Qantas and Virgin received in Commonwealth relief funding combined. That’s a handout worth 21.3 per cent of Rex’s annual revenues, so the equivalent of giving – not loaning – Virgin $1.2 billion and Qantas $3.8 billion.

Adding insult to injury, McCormack (who is also the Transport Minister and Nationals leader) said on April 2 that “Virgin will also be able to benefit from the $298m package that we put down the other day: $198m for subsidising the 138 routes flown to and from regional centres”. Which was completely false. Virgin did not qualify for a cent of this money.

That same day, McCormack said: “We can’t just pick and select individuals and winners out of this" – words he will be force-fed for the rest of his pitiful career.

Just like Virgin, foreign-owned Rex was going broke. “Even Rex cannot survive the next six months of this global emergency,” its chief operating officer, Neville Howell, pleaded. Even Lim confirmed to CNBC that Rex is only surviving “at least the next six months … thanks to the grant from the government”.

We can’t just pick and select individuals and winners out of this.— Deputy Prime Miinster Michael McCormack

So McCormack told Virgin to find “a market-led solution” but gifted Rex all the cash it needed. Sharp, who just so happens to also be a longstanding National Party official, exalted McCormack’s “meaningful assistance package” designed to “prevent [Rex] from collapsing”. The audacity of the cronyism almost eclipses the cronyism itself.

When Prime Minister Scott Morrison reckoned on April 14, vis-à-vis the aviation sector, that “we haven’t been picking any winners or picking any favourites here”, he cannot have been properly briefed on his deputy’s staggering conduct.

Most galling of all are Rex’s grand (and expensive) growth plans just four weeks after a $67 million taxpayer freebie saved it from bankruptcy. Right now, Rex may be the only airline on earth in expansion mode. The Deputy Prime Muppet emits a resounding silence. Is this what not picking winners looks like?

All cool/rgds
S28- BE

[Arnold E]

Things seem to have gone very quiet on the REX into jets front.

[neville_nobody]

An ASIC investigation tends to have that affect!:}

[Arnold E]

I would think that with the announcement of Alliance getting 20-25 new jets the chances of Rex getting into jets has taken a severe downturn, pity, would have been a good thing I think

[TT738]

I would think that with the announcement of Alliance getting 20-25 new jets the chances of Rex getting into jets has taken a severe downturn, pity, would have been a good thing I thinksurely qq would try to buy all VARA F100s & others it can find to dominate the FIFO market ?

Rex could still do the golden triangle & make money. They have the slots & feed from their regional ops.

[onehitwonder]

very very quiet

[machtuk]

very very quiet


REX who?;)