REX to transition to ATRs, start domestic jet ops

[neville_nobody]

I wonder what the reason for a being current Check Captain is? Your check approval is only applicable to your current AOC. Once you resign that approval disappears and you have to reapply for another approval under a new AOC. In essence there is no difference between someone who is a Check Captain today vs someone who was a Check Captain 3 years ago.

[transition_alt]

I wonder what the reason for a being current Check Captain is? Your check approval is only applicable to your current AOC. Once you resign that approval disappears and you have to reapply for another approval under a new AOC. In essence there is no difference between someone who is a Check Captain today vs someone who was a Check Captain 3 years ago.

Apart from currency...

[neville_nobody]

Apart from currency...

Currency is irrelevant these days as anyone will have to go through all the sims and approvals regardless of when they last flew a 737. Sure it might be easier for someone who is current but if you were a 737 check captain for 20 years but now flew something else I don't think a transition back to a 737 would be that difficult. By requiring currency they are limiting the pool of candidates significantly. Unless of course this is for show and the candidate has already been selected.

[AerialPerspective]

Would have been interesting really...the Labor party sold Australian Airlines to QANTAS in the 1990's, and started the sale of QANTAS by selling 25% of it to BA in 1993.

AND Aerial you consider that Govt purchasing VA with a debt in excess of $7 BILLION would have been a good idea?

Seeing how Governments run, that would have been a 70 Billion black hole in no time.

And really, even the Labor party (if they had of been in power) would not be that stupid...they are just saying what you want to hear...its called being in opposition and just having thought bubbles, and preaching to people that believe that those in Government are there for the electorates good (hahahahaha...yeah right!!!).

I never said VA should have been bailed out by the government... that's just rewarding poor performance, I was responding to you suggesting a "... Labor government would have bailed them out..." with the impression that you seem to think that's a bad thing but you have nothing to say about the LNP bailing out REX... that's like Howard parroting how "... the Commonwealth isn't in the business of bailing out private companies..." when Ansett collapsed... OH, wait!!! Unless they are a company who the then PM's brother is on the board of...

[Zhoottoo]

Old longlegs is on to it, or so they thinks - https://www.pprune.org/australia-new-zealand-pacific/634716-rfi-aad-skytraders-a319-operation-out.html#post10876375

Guessing if your a Liberal politician you better brace. What the junior coalition partner has been up to is going to make interesting reading at a Royal Commission.

[longlegs]

Old longlegs is on to it, or so they thinks - https://www.pprune.org/australia-new-zealand-pacific/634716-rfi-aad-skytraders-a319-operation-out.html#post10876375

Guessing if your a Liberal politician you better brace. What the junior coalition partner has been up to is going to make interesting reading at a Royal Commission.

My wife certainly doesn't think so!!! Especially now Job Keeper is what pays the bills. This made me smile!!!

https://cimg6.ibsrv.net/gimg/pprune.org-vbulletin/1080x927/cex_dd91c323b99cd966d281f5ff04178fdc191b46f8.jpg

[Mach E Avelli]

I wonder what the reason for a being current Check Captain is? Your check approval is only applicable to your current AOC. Once you resign that approval disappears and you have to reapply for another approval under a new AOC. In essence there is no difference between someone who is a Check Captain today vs someone who was a Check Captain 3 years ago.

T'ain't necessarly so. Not all check pilot authorizations are tied to a particular AOC. It depends under which rule the authorization was granted, ie CAO 82 or CASR Part 61. If you hold a Part 61 Flight Examiner Rating and have done a renewal (EPC) with CASA within the past two years you can examine on any type on which you are current, even with no AOC. In other words, a FER permits one to operate independently, allowing an appropriately qualified examiner to test under his/her own ARN (e.g. by using a suitable simulator).
So, theoretically, REX could engage a couple of B737NG Examiners, induct them into the Company and they could be training or checking within days of joining. Or even contract the work out. Practically, because of CAR 217, CASA would have their hands all over the process to ensure it met with their approval.
If REX engage enough of the right people and throw enough money at it, six months to add the B737 to their AOC is entirely doable.

[The Banjo]

Rex throwing money...?

Don't think so.

[No Idea Either]

Come on Banjo.......the First National Bank of Rex will be doing all the throwing😒😒

[Ladloy]

Come on Banjo.......the First National Bank of Rex will be doing all the throwing😒😒
The LNP cheque book?

[Vref+5]

Can’t outsource checking for HC RPT greater than 30 seats from memory. But employing 737 captains with FER and current EPC- the way to go

[airdualbleedfault]

Vref, you can induct contract/casual checkies into a CAR217 operation

[Section28- BE]

Full Crew 'on-deck' for this gig/article..........

Link: https://www.abc.net.au/news/2020-09-16/rex-airlines-considers-taking-over-routes-abandoned-by-virgin/12668060

rgds
S28- BE

[MickG0105]

Some news on REX's financing for its domestic expansion due out soon - https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=02283118

Separately, Labor have apparently got their hands on some emails from 'the government' to Rex warning them about not using government grants to fund their expansion plans. There's a pay-walled story in The Fin here (https://www.afr.com/companies/transport/department-cautioned-rex-over-use-of-government-assistance-20200920-p55xcl).

[Section28- BE]

Article link: https://www.afr.com/companies/transport/department-cautioned-rex-over-use-of-government-assistance-20200920-p55xcl

An extract:- ExclusiveDepartment cautioned Rex over use of government assistanceLucas Baird (https://www.afr.com/by/lucas-baird-h18hts)Reporter
Sep 21, 2020 – 12.00am

Airline Regional Express was cautioned by federal officials for using subsidies aimed at helping aviation players cope with COVID-19 (https://www.afr.com/companies/transport/100m-bailout-for-struggling-regional-airlines-20200329-p54ezq) to expand its network, fresh documents show.

Emails from early May – obtained under freedom of information laws by Labor MP for Ballarat Catherine King and distributed to The Australian Financial Review – redact the exact market in question.

But industry sources said Rex turned an existing Melbourne-Burnie service into a triangle by adding a leg that landed in King Island around the time of the email. And the new triangle has been the subject of competition complaints from rival carrier Sharp Airlines in recent months.

Rex is believed to be still running the triangular service. A map of the airline's network found on its website displays Melbourne-Burnie-King Island as a triangular service.

Rex said: "It is on open record that we have combined routes as an efficiency effort."

It would not confirm or deny whether the Melbourne-Burnie-King Island triangle was the one questioned in the email.

"We absolutely appreciate there are operational and cost efficiencies in running [the redacted route], and this was why we agreed to subsidise the service," a May 7 email from the Department of Infrastructure to Rex network head, Warwick Lodge, said.

"We have since been made aware, and you have confirmed, that Regional Express was not flying the [redacted] leg prior to COVID-19. As advised last week, the program is not designed to support airlines to enter markets they were not servicing prior to the COVID-19 crisis."

It is the first example of an airline receiving an official warning over how it applies the hundreds of millions of dollars in assistance afforded to the sector (https://www.afr.com/politics/federal/airlines-double-dip-on-covid-stimulus-cash-20200609-p550tv). Rex, separately, has also faced criticism from Qantas chief Alan Joyce for planning to expand with routes connecting Sydney, Melbourne and Brisbane after taking a $54 million taxpayer-funded bailout. (https://www.afr.com/link/follow-20180101-p55rl5)

"They should not be using government subsidies to fund growth," Mr Joyce said earlier this month. "That doesn't feel right. That doesn't seem right."Rex 'not agreeable' to department suggestionsRex attacked those suggestions, saying it would fund the services between the east coast with capital raised on the market and called Mr Joyce "misinformed".

Aviation remains one of the worst-affected sectors of the COVID-19 crisis, which has crushed travel demand and forced the government into supporting the industry. (https://www.afr.com/link/follow-20180101-p55wvv)

The subsidy program referenced in the emails between Rex and the department is the Regional Airline Network Support Package, which was still in its first tranche at the time of the emails.

The scheme – initially set to expire on September 30 – has been extended to December 31. It covers the costs of running specific regional services, so airlines break-even on the flights, with the government allocating Rex more than $40 million under the program as of writing. (https://www.grants.gov.au/?event=public.GA.show&GAUUID=EED0A3A3-D2D6-A90A-E4C7204CD113DFF5)

Department officials said it would consider two options for the future of the route in question.

They offered to continue subsidising three services per week on the original route without any cash underwriting of the newly introduced leg, or support for two weekly return services on the entire triangle.

In response, Mr Lodge said: "Rex is not agreeable with the approach of operating two return services separately for both routes."

"If the [redacted] legs are fully excluded from the RANS funding, then Rex should be entitled to operate the [redacted] routes in the most efficient way that it can."

"Rex have done everything in accordance with the scheme and what we have done with optimising [redacted] our schedules is something that was encouraged by your department," Mr Lodge said.

The emails reference actions at a second unnamed airline yet the department batted away concerns as those activities concerned routes that the airline was flying pre-COVID.

"I think the Rex situation is slightly different," a department official told Mr Lodge.

"We are prepared to consider two services per week for both routes, consistent with our approach on all other point to point routes. I'm very happy to discuss further, but if you are comfortable with this approach, we can look to proceed with the deed variation."

rgds all
S28- BE

[dijical]

afr.com (https://www.afr.com/street-talk/asian-pe-giant-to-bankroll-rex-expansion-plans-20200921-p55xjs)Asian PE giant to bankroll Rex expansion plansRex had been exploring ways to fund the expansion, including raising equity from new and/or existing shareholders, selling aircraft or a deal with a financial investor. Rex told investors in July it had term sheets from three different lessors about a sale-and-leaseback of its 60 unencumbered aircraft for $30 million.

https://static.ffx.io/images/$zoom_0.6132%2C$multiply_0.1322%2C$ratio_1.777778%2C$width_1 059%2C$x_0%2C$y_96/t_crop_custom/e_sharpen:25%2Cq_85%2Cf_auto/b9a95c71758261bea08ff4c5ec5894faedb98728 (https://www.afr.com/companies/transport/rex-to-raise-at-least-30m-for-capital-city-expansion-20200629-p5577a)

It is understood PAG's private equity unit emerged as the best option to raise the bulk of the funds after a comprehensive review, which also involved talks with other private equity firms.Asia-based heavyweight in private equityPAG is a big player in private equity and investment management in Asia, with about $US40 billion in assets held on behalf of institutional investors from all over the world.

PAG's private equity dealmakers have turned their attention to Australia in recent years, picking up Oporto and Red Rooster franchisor Craveable Brands (https://www.afr.com/street-talk/asian-pe-circles-oporto-red-rooster-owner-data-room-open-20190214-h1b8sy) and specialist cake retailer The Cheesecake Shop.

For Rex, a $150 million convertible note will form a big part of the group's capital structure.

The company recorded $328.1 million turnover in the year to June 30 – a year heavily affected by the COVID-19 pandemic – and a $19.4 million loss. It was in a net cash position at June 30, according to a preliminary final report handed down to shareholders last month.

Law firm Baker McKenzie advised Rex, while MinterEllison did the legal work for PAG.

Rex shares were halted from trade on Monday morning to allow the convertible notes deal to be finalised. The company's shares last traded at $1.09, which valued the group's equity at $120 million.

Rex's new services are expected to build on its existing infrastructure in capital city airports, deputy chairman John Sharp said in June, (https://www.afr.com/companies/transport/rex-to-raise-at-least-30m-for-capital-city-expansion-20200629-p5577a) and would seek to fly passengers between capital cities on Australia's east coast.

The mooted expansion comes at a time when most Australian aircraft is grounded as a result of border lockdowns and travel restrictions.

https://www.afr.com/street-talk/asian-pe-giant-to-bankroll-rex-expansion-plans-20200921-p55xjs

[Section28- BE]

Hmmmm-

The company recorded $328.1 million turnover in the year to June 30 – a year heavily affected by the COVID-19 pandemic – and a $19.4 million loss. It was in a net cash position at June 30, according to a preliminary final report handed down to shareholders last month.

Just 'a' question- so where, does the 'said' truck with $54M arrive (for free) in all of this 'Accounting'......?????- then, the 'said' $40M of under-written operations......, just 'a' question...????

Do, NOT get Bomby ......, just a question?????, is all.

rgds/be well all
Section28

[MickG0105]

Hmmmm-



Just 'a' question- so where, does the 'said' truck with $54M arrive (for free) in all of this 'Accounting'......?????- then, the 'said' $40M of under-written operations......, just 'a' question...????

Do, NOT get Bomby ......, just a question?????, is all.

rgds/be well all
Section28
There was a 'Government grants and subsidies' line added to Rex's P&L to the tune of $62.095 million. That would have been made up of original allocation of around $8.5 million under the Regional Airline Network Support program and the $54 million under the 'That ain't workin' that's the way you do it' program.

There was a serendipitously coincidental alignment between the recognised value of the government grants and the valuation of the asset impairment write down 'in anticipation of difficult trading conditions in the next two years'. Apparently those anticipated difficult trading conditions didn't preclude funding an expansion with a capital raising leveraged at 125 per cent.

I'm not seeing this end well for the Regional Express Group.

[Chronic Snoozer]

Hi Mick,

Any comment on this from AJ?


"They should not be using government subsidies to fund growth," Mr Joyce said earlier this month. "That doesn't feel right. That doesn't seem right."

[Section28- BE]

ASX link: https://www.asx.com.au/asxpdf/20200922/pdf/44mvx75swx579p.pdf

Is subject to 'Due Diligence'.

22 SEPTEMBER 2020
ASX RELEASE
REX ANNOUNCES EXCLUSIVE NEGOTIATIONS REGARDING FUNDING FOR ITS DOMESTIC MAJOR CITY JET OPERATIONS

Regional Express Holdings Ltd ACN 099 547 270 (Rex) has signed yesterday evening a long-form term sheet and is in advanced exclusive negotiations with PAG Asia Capital (PAG), a leading Asia-Pacific focused investment firm, regarding an investment by PAG of up to AUD150 million to be used exclusively to support the launch of Rex’s domestic major city jet operations scheduled to commence on 1 March 2021 (FUNDING).

rgds
S28- BE

[MickG0105]

Hi Mick,

Any comment on this from AJ?
G'day CS,

I think he's dead right. There's something decidedly amiss when an airline

gets nearly 20 per cent of its previous year's revenue just handed to it as 'last resort' grant funding,
takes a significant P&L write down 'in anticipation of difficult trading conditions in the next two years', and then
launches an expansion the cost of which is greater than its current market capitalisation.

[3 Holer]

Some would call it "Honour among Thieves"......................:E

[Double_Clutch]

What happened to the government $$$ that was handed out?
Surely PAG & REX will and it back now they have obtained “industry support”?

[Ladloy]

What happened to the government $$$ that was handed out?
Surely PAG & REX will and it back now they have obtained “industry support”?
Give it to the employees

[wheels_down]

What corporate market are they actually targeting? The lack of any solid frequency might be an issue unless they are planning flights on the hour in peak.

The Tiger traffic will just flow to the Star or they won’t go.

I know they have been around for a bit and they might claim they know the ropes, but 10 aircraft not done before can burn a lot of cash very quickly.

They will face the same PR headwinds as Tiger with a small fleet, they don’t exactly have a system to transfer delayed or cancelled pax to other carriers or its own subsidiary. They are a tightarse regional carrier, as if they will want to fork out tens of thousands to bump pax to Virgin or the Roo.

[Section28- BE]

....... didn't preclude funding an expansion with a capital raising leveraged at 125 per cent.

I'm not seeing this end well for the Regional Express Group.

Fully-Loaded/Leveraged and Werked Balance Sheet (now where have we seen one of those before...?? oh yeah, that's right- the smoke is still clearing!!!!), it is Aviation, it is Australia- what could possibly go wrong.........??, this market/and the economy is going to 'snap-back' post virus (if they yard it this time), apparently!!!.

'Money for nothin' and chicks for free'- it is all go, run the 'due diligence' ruler over it, apply bulk money and light the sucker March 2021, easy.

rgds all
S28- BE

[Section28- BE]

SMH article link: https://www.smh.com.au/business/companies/golden-triangle-dogfight-rex-creates-headaches-by-taking-on-qantas-and-virgin-20200922-p55xzp.html

An extract:Opinion'Golden triangle' dogfight: Rex creates headaches by taking on Qantas and VirginStephen Bartholomeusz (https://www.smh.com.au/by/stephen-bartholomeusz-h0yjtd)Senior business columnist
September 22, 2020 — 12.01pm

One of the more interesting and delicate issues to watch as the economy emerges from the pandemic is how the Australian Competition and Consumer Commission responds to the efforts to recover lost volumes by companies with market power.

Given how concentrated many major segments of the economy are, the differences between pro-competitive and anti-competitive behaviours are likely to be quite blurred.

Loss-leading to rekindle customer activity is probable in some of the sectors, particularly the consumer-facing sectors, while the temptation for informal collusion, or managed competition, to maximise profit recoveries and regain and maximise market shares will also be strong.

Rex's plans to fly the Golden Triangle will add another element to the competitive dynamics of the domestic industry as it emerges from the pandemic.

These aren’t normal circumstances and the ACCC will be confronted with the challenge of determining which behaviours are rational responses to the legacies of the pandemic in the short term, while trying to ensure they don’t lead to a structural loss of competitive intensity in the longer term.

Nowhere will the tensions between the efforts to salvage and rebuild businesses decimated by the pandemic and the long term consequences for competition be more acute than in aviation, where the entire global industry is essentially on life-support (https://www.smh.com.au/link/follow-20170101-p54e65), awaiting the re-opening of economies. Airlines are highly operationally and financially leveraged businesses, with relatively small shifts in costs and volumes leading to either significant profits or substantial losses.

At the moment most of the industry is grounded, much of it is being kept technically alive via government assistance and there is little prospect, even for domestic airlines, of a return to pre-pandemic normal for some years. The time-frame for a large-scale resumption of international aviation is far more extended.

The plight of the industry, and its economics, makes the ACCC’s approach to policing competition issues in the sector particularly interesting. In some respects it provides a concentrated insight into the issues that will emerge across the economy.

Last week the commission produced its first report on its monitoring of the domestic air passenger industry.

It’s curious that airlines have been singled out for special monitoring, including their provision of monthly reports to the ACCC of their capacity, load factors and revenues for each of their routes along with qualitative information such as board papers. The ACCC’s normal powers to demand information, which include its ability to both request information and interrogate individuals, ought to have been sufficient.

The monitoring, however, is at the direction of the federal government, which instructed the commission in June to monitor prices, costs and profits in the sector for the next three years to protect competition in the sector.

In June, of course, Virgin Australia was in administration. While its pleas for a government cash bailout had been refused, it appears its subsequent request for protection from Qantas if and when it (Virgin) emerged from administration was successful.

Virgin has subsequently been acquired by private equity group Bain Capital (https://www.smh.com.au/link/follow-20170101-p55scm) and will emerge from administration with a vastly different balance sheet and cost structure. Its previous creditors have been essentially wiped out, large numbers of aircraft leases have been terminated or renegotiated, thousands of jobs have been shed and the administration has enabled it to re-do other contracts with suppliers.

When the market does reopen properly, Virgin will fly fewer planes on fewer routes and its second brand, Tiger, won’t fly at all. Qantas has said – and Virgin has agreed - that, as a result, it expects its domestic market share to rise from around 60 per cent pre-pandemic to about 70 per cent.

Complicating the ambitions of both Qantas and Virgin – and adding another element to the competitive dynamics the ACCC will have to grapple with – are the plans by regional carrier Rex to enter the “golden triangle” routes between Sydney, Melbourne and Brisbane.

It’s not clear how Rex expects to survive a three-cornered contest bookended by Qantas and a Virgin now backed by Bain, with its formidably deep pockets.

Rex announced on Tuesday that it is in advanced negotiations with an Asian private equity giant for an issue of convertible notes that could raise up to $150 million. If the first $50 million tranche were converted, PAG Asia Capital would own 23 per cent of Rex. If the fully $150 million were converted it would hold 48 per cent.

The Singapore-owned Rex, a recipient of about $60 million of taxpayer funds to maintain its regional routes (the far larger QantasLink and Virgin presence in the regions went largely unrewarded), has said it will buy or lease planes (some, ironically, from the former Virgin fleet) to compete with the incumbents.

While that’s not good news for either Qantas or Virgin – the triangle routes are arguably the world’s most profitable domestic routes and the core of the carriers’ profitability – it’s probably worse for Virgin and Bain than for Qantas, whose loyalty program and dominance of business travel makes it less vulnerable. It also has Jetstar to deploy against price-driven competition.

In fact, the entrant of a third party will help Qantas to a degree because, if Rex lowers ticket prices to build its presence, it provides cover for the Qantas group to match those prices and use its dual brands and its greater capacity and frequency to meet the competitive threat. That’s not anti-competitive behaviour.

It’s not clear how Rex expects to survive a three-cornered contest bookended by Qantas and a Virgin now backed by Bain, with its formidably deep pockets. Others – Southern Cross, Compass (twice) and Impulse among them – have tried to crack the duopoly in the past and failed.

It’s obvious that as the market opens up, even without Rex adding to the intensity, Qantas and Virgin would have initially scrambled to attract whatever volumes there were before the market settled down. There’s no revenue or profit in having planes sitting on the ground.

In the initial land grab for returning customers there could be some loss-leading, although rational competition – and Qantas and Virgin have vowed to be rational – would see capacity returned and fares priced at levels where the cash generated at least covered the variable costs of putting the planes into the air.

It is that period of gradual resumption of flying and the necessary incentives to convince passengers to travel again that will be the messiest and most challenging for the ACCC, particularly if it is something other than direct competition between Qantas/Jetstar and Virgin.

It will have to determine what’s rational pro-competitive behaviour in a market that history suggests will only sustain two players and which will be in the earliest phase of start-up from a pandemic-induced depression.

Aviation isn’t the only sector where these sorts of questions and issues will be at play but its nature and imminent structure will magnify, and confuse, the competition policy considerations of its attempt to re-emerge from the worst of the pandemic.

rgds all/be well
S28- BE

[gordonfvckingramsay]

The one thing none of the news outlets or politicians have ever mentioned is that this recession (as opposed to the one we had to have) is not a “structural” recession. Take away COVID and the economic fundamentals are extremely good. The bounce back will be aggressive.

REX thinking they have the reserves to become a player in the domestic/regional “vacuum” left by Virgin is an overstatement. If they looked at the manoeuvring happening on the east coast to cut them off at the knees, they would pull the pin on the jet dream.

[machtuk]

TigeRex, I think I'll register that name, I can see its future already!-:)

[patty50]

Take away COVID and the economic fundamentals are extremely good. The bounce back will be aggressive.



What economy are you looking at?

Wages growth was already low, productivity growth low, GDP held up only by immigration, mortgage stress and debt levels increasing.

The entire house of cards is held up by digging things out of the ground.

[SIUYA]

Take away COVID and the economic fundamentals are extremely good. The bounce back will be aggressive.

You can’t simply ‘Take away COVID’, and COVID is going to have long-term adverse economic consequences.

No rapid rebound as four-year budget to suffer $553bn hit

The Australian - Page 4 : 23 September 2020
Original article by Adam Creighton

Roy Morgan Summary

AMP Capital's chief economist Shane Oliver expects the federal government to post a combined Budget deficit of $529bn over the four financial years to June 2023. He has also forecast that gross federal public debt will rise from 34 per cent of GDP to 54 per cent over this period; he warns that public debt in Australia and other developed countries may remain relatively high for some time in the wake of the coronavirus pandemic. Oliver anticipates a budget deficit of $230bn for the current financial year. The government had forecast a surplus of $6.1bn in its mid-year economic and fiscal outlook in December.

[gordonfvckingramsay]

You can’t simply ‘Take away COVID’, and COVID is going to have long-term adverse economic consequences.

I wasn’t referring to magically removing COVID, but the Australian economy was also never destined to go into recession territory before COVID came along.

The deficit is circumstantial and, while it will take a long time to pay off, consumer confidence won’t be damaged by this. Confidence will return as soon as restrictions lift.

Mining in and of itself is not a bad thing to have an economy based on, same as tourism. I think the major issue we have is that Australia has massive holes in its Industrial diversity. We need manufacturing.

Anyway we digress. I feel Rex is about to have its arse handed to it by a monopoly minded Qantas.

[dijical]

23 SEPTEMBER 2020 MEDIA RELEASE REX

UPDATE ON REGIONAL ROUTES ABANDONED BY VIRGIN AUSTRALIA

Following Rex’s call for Expressions of Interest (EOI) from communities which have been abandoned by Virgin Australia, Rex today reports that it has been progressing discussions with several cities including Geraldton, Port Macquarie and Canberra.

Canberra? Which Canberra routes did Virgin abandon?

[wheels_down]

The only one that was cut was Tiger Canberra-Melbourne/Brisbane.

I would have thought Jetstar might have entered that one as they did state in the past they wouldn’t consider it while Tiger was twice a day.

[MelbourneFlyer]

Looks like Executive Traveller has blown the doors off Rex's capital network plans. The website got hold of the investor proposal for what Rex is calling Project Mother which outlines pricing, Stage One and Stage Two routes, and EBA at -10% JQ because “pilots and engineers will also be queuing at the door": https://www.executivetraveller.com/news/revealed-how-rex-plans-to-take-on-qantas-virgin-australia

[wheels_down]

“Salary expectations will also be very constrained and a fresh EBA (enterprise bargaining agreement) will get rid of the decades of accumulated entitlements.”
I see the attitude hasn’t changed over the years at this operator.

It will come back to haunt them in the medium to long term when the world accelerates again and, well nobody wants to work for this bottom feeding operation when jobs are in easy reach. That day will return. In the meantime they will get hundreds of applicants.

[gordonfvckingramsay]

“Salary expectations will also be very constrained and a fresh EBA (enterprise bargaining agreement) will get rid of the decades of accumulated entitlements.”

Don’t get killed in the rush as anyone with a hard-on and a CPL rushes to accept those terms just to fly a jet.

[Mach E Avelli]

and EBA at -10% JQ because “pilots and engineers will also be queuing at the door": https://www.executivetraveller.com/news/revealed-how-rex-plans-to-take-on-qantas-virgin-australia

If calculated on the total package, 10% off the JQ EBA is not such a bad deal. In the current situation it would be a good deal. There will plenty who will grab that. Those who have had a taste of life in the sandpit or other 'exotic' overseas locations and been burned by uncaring employers will be forever grateful if they can land such a deal back home.
But EBA minus 10% alone won't give Rex the cost savings they will need to be competitive. So what else will be cut to the bone? Forgive me the cynicism, but if something seems too good to be true, it usually is.

[porch monkey]

Given the new "offer" at VA, the Rex offer doesn't look that bad at all.............

[gordonfvckingramsay]

Given the new "offer" at VA, the Rex offer doesn't look that bad at all.............


Isn’t that like saying “they peeled the pineapple, I guess I should thank them for that”?

This is the problem with aviation, we are happy defending a $hit deal because it’s less $hit than someone who has it worse than I do.

Pilots being expensive is a CEO red herring.

[porch monkey]

Just to be clear, I wasn't suggesting either of them are acceptable. But some will no doubt find them so. Sarcasm doesn't come across all that well in the written media. They didn't peel the pineapple.

[gordonfvckingramsay]

Just to be clear, I wasn't suggesting either of them are acceptable. But some will no doubt find them so. Sarcasm doesn't come across all that well in the written media. They didn't peel the pineapple.

Gotcha.

Still, there is the belief that a $hit deal is ok because someone else is worse off.

[Roj approved]

Isn’t that like saying “they peeled the pineapple, I guess I should thank them for that”?

This is the problem with aviation, we are happy defending a $hit deal because it’s less $hit than someone who has it worse than I do.

Pilots being expensive is a CEO red herring.

And we fall for it everytime 😩 there are some tough times ahead, for sure, but let’s be level headed and not fall for this ****e

[Colonel_Klink]

Don’t get killed in the rush as anyone with a hard-on and a CPL rushes to accept those terms just to fly a jet.

I still work for VA and am seriously considering applying....

[Ragnor]

Well if VA want to cut a skipper to 170k I’m sure Rex won’t pay any more than that.

[Turnleft080]

I just got this gut feel crystal ball thing, some time in the future either Rex will merge with Virgin or Virgin will merge with Rex.
Both fleets would complement each other. 60 Saabs and 70 73s. It just makes sense. It would make the perfect airline instead of the two josiling around for market share
and would even up the battle with QF/JQ. Just a left field view.

[porch monkey]

Not likely with the muppets/egos running both companies. After a complete turnover of management, maybe.....

[Section28- BE]

Article link: https://www.abc.net.au/news/2020-09-27/federal-government-extends-subsidies-regional-domestic-flights/12708664

rgds
S28- BE

[packapoo]

Have we made up our mine yet....?

That is, transitioning or going jet...?

[MickG0105]

Article link: https://www.abc.net.au/news/2020-09-27/federal-government-extends-subsidies-regional-domestic-flights/12708664

rgds
S28- BE
How very convenient for Rex that the Regional Airline Network Support program will run for another six months, all the way till the end of March. That effectively shores up their day-to-day country ops while they get their Sydney-Brisbane-Melbourne jet ops cranked up.

[brokenagain]

Convenient for Rex yes, but Rex isn’t the only beneficiary of that program.

[MickG0105]

Convenient for Rex yes, but Rex isn’t the only beneficiary of that program.
True, Rex is not the sole beneficiary of the program; 15 airlines have received grants under the Regional Airline Network Support program. However, Rex is the single largest beneficiary having received over $40 million or 35 per cent of the funds granted under that program. Rex has received more under RANS than what was granted in aggregate to 13 of the 14 other airlines.

Of course, the $40-odd million under RANS is on top of the nearly $54 million that Rex received under the COVID-19 Regional Airlines Funding Assistance program. Rex's grant alone represents just shy of three quarters of the 'last resort' funding made available under that program.

[aviation_enthus]

True, Rex is not the sole beneficiary of the program; 15 airlines have received grants under the Regional Airline Network Support program. However, Rex is the single largest beneficiary having received over $40 million or 35 per cent of the funds granted under that program. Rex has received more under RANS than what was granted in aggregate to 13 of the 14 other airlines.

Of course, the $40-odd million under RANS is on top of the nearly $54 million that Rex received under the COVID-19 Regional Airlines Funding Assistance program. Rex's grant alone represents just shy of three quarters of the 'last resort' funding made available under that program.

Of course they have!! Rex is by far the largest regional airline (excluding Q’link) so it stands to reason they receive a large proportion of the funding. As stated, the funding also keeps a bunch of other airlines running into next year as well.

[aviation_enthus]

If... Rex manage to pull this off, the $150 million investment should give quite a nice return to the HKG fund.

Think about the end result:
- regional ops with $300+ million in revenue
- domestic jet ops $5-600 million in revenue
- even with a 5% profit margin that’s around $40-$50 million in profit per year.

Plus the cashflow from jet ops should help Rex get funding to replace the Saab fleet when the time comes. Also having connections (via jets) may help them win some extra passengers on the regional network.

I know there’s a lot of naysayers on this site, but I think Rex have a good chance of pulling this off. The one major thing going for them is the ability to control costs. Whatever you think of management, this is one key skill in any airline. Without it, airlines fail. Something our friends at VA are learning about now...

[MickG0105]

Of course they have!! Rex is by far the largest regional airline (excluding Q’link) so it stands to reason they receive a large proportion of the funding.
The government has put up over $187 million in COVID-19 regional aviation grants to the end of September and Rex has pocketed just over half of that. That is disproportionate which ever way you look at it.

[1A_Please]

If... Rex manage to pull this off, the $150 million investment should give quite a nice return to the HKG fund.

Think about the end result:
- regional ops with $300+ million in revenue
- domestic jet ops $5-600 million in revenue
- even with a 5% profit margin that’s around $40-$50 million in profit per year.

Plus the cashflow from jet ops should help Rex get funding to replace the Saab fleet when the time comes. Also having connections (via jets) may help them win some extra passengers on the regional network.

I know there’s a lot of naysayers on this site, but I think Rex have a good chance of pulling this off. The one major thing going for them is the ability to control costs. Whatever you think of management, this is one key skill in any airline. Without it, airlines fail. Something our friends at VA are learning about now...
Containing costs is important but if your revenue is garbage you still go broke and I can't see what they are offering that will make people move from QF or VA so their load factors will probably do them in.

[MelbourneFlyer]

Rex has signed leasing agreements with two lessors for six Boeing 737-800NG jets, three of which will be used to launch Sydney-Melbourne flights on 1 March 2021.

https://www.executivetraveller.com/news/rex-sydney-melbourne-boeing-737-flights

[Section28- BE]

ex the ASX link here: https://www.asx.com.au/asxpdf/20200930/pdf/44n5gq39wgnlm9.pdf

an Extract:

30 SEPTEMBER 2020
ASX RELEASE
REX LOCKS IN SIX BOEING 737-800 NG FOR DOMESTIC JET OPERATIONS

Rex today announced that it had yesterday evening signed Letters of Intent with two Lessors for the lease of six Boeing 737-800 NG aircraft.

The first 737 will be delivered on 1 November 2020 with the remaining five aircraft being phased in over the following four months in readiness for the launch of Rex’s domestic jet operations.

Rex’s Deputy Chairman, the Hon John Sharp AM, said, “Today I am pleased to announce that we have selected the Boeing 737-800 NG as the aircraft for our domestic jet operations. These aircraft are well received by passengers and have proven to be very suitable for operations in Australia”...........


rgds
S28- BE

[Oriana]

It's one thing to accept government assistance to maintain continuity of service to regional areas, it sure as **** is another thing to use that support that will assist you with the setup costs of expansion.

[Buster Hyman]

Like being "gifted" an entire Domestic airline?

[Transition Layer]

Like being "gifted" an entire Domestic airline?

This came up earlier in the year at the height of the Government backing debate with Virgin and Qantas. I can’t recall the exact numbers but pretty sure Qantas paid the Government a multi billion dollar dividend in the years immediately after the merger once the QF stock market float happened.

[Oriana]

Like being "gifted" an entire Domestic airline?

How many years ago was that? The government divested itself of two airlines... packaged up both airlines and floated it.

In this instance, We're talking about using (effectively) emergency funds REX were crying about to save them 'from impending collapse' and then come out with expansion plans.

Like giving a beggar $20 bucks to get a feed only to find out they were putting that toward a million dollar investment property.:hmm:

We all know it smells.

[MacTrim]

Six B737 , those senior REX lads are all going to be B737 Captains and TREs, yeah definitely, REX will insist on it 😂🤣😂🤣😂😂🤣😂🤣

[blubak]

Rex has signed leasing agreements with two lessors for six Boeing 737-800NG jets, three of which will be used to launch Sydney-Melbourne flights on 1 March 2021.

https://www.executivetraveller.com/news/rex-sydney-melbourne-boeing-737-flights
I dont work for REX & dont intend to but if it means employment for some people currently without or soon to be without a job i would have thought it was a bit of a positive.
They have got money from the govt but so have others & i guess in business you have to use it to best advantage.
I hope for the people working there that it is successful & time will tell i guess,good luck i say.

[Window heat]

Hmmmm, foreign money represented by an ex Minister for Transport. Nothing to see here folks, we’re just an honest start up, taking on the big companies.

[430W]

This doesn't make any sense. Do Rex really believe that Bain Capital after spending all they have and QF are going to sit idly by and have Rex wander in and take market share on these routes. Rex are going to squeal like a stuck pig when they get the competitive reaction that anyone could see coming. Bain must be absolutely beside themselves with the way this has played out with the closed borders and now with a start up competitor being subsidised by government to the magnitude it is.

While I understand Rex doing it because the subsidies are offered you have to question the appropriateness and magnitude of the subsidy provided to this company which has the Coalition's Ex-Minister of Transport,Ex-Treasurer of the National Party and expert in government travel rorts as Deputy Chairman. Highly questionable no matter how you look at it.

No other industry or individual is receiving subsidies like this. Everyone else is on a subsistence type payment to keep people employed (or at least attached to the company) or receiving legislative protection to keep wolves from the door. While I sympathise with the sentiment that this is providing jobs. What about the jobs it will be costing in VA and QF as they react to a false market created by the government. The concept that Rex is receiving subsidies that enable them to do this must be galling to VA and QF. You shouldn't be able to receive subsidies like this while expanding. No problem with them doing it, I just object to the subsidies that may affect my job.

[machtuk]

When you remove all the spin all the corruption all the lies all the under the table deals all the rorts & all the back door con jobs at the end of the day the general public who know virtually nothing about how our corrupt Airline industry works they couldn't care less as long as they get to where they are going for the cheapest fare!
V3.0, QF (we never crash), RexJet & any others who wanna be part of the circus are only choices to Mr& Mrs Joe public! The future of flying in this almost destroyed nation will be based on the end users cost more than any other time!

[Arnold E]

Well its good that all the nay sayers here would not lower themselves to work for REX and thereby compromise their integrity because that leaves room for the guys that support REX in their efforts and want to work for them, and there is quite a few

[blubak]

Well its good that all the nay sayers here would not lower themselves to work for REX and thereby compromise their integrity because that leaves room for the guys that support REX in their efforts and want to work for them, and there is quite a few
Yes,like i said before if it gives someone a job its a positive in my opinion.
Sure the big boys will try to stop them in their tracks but there are plenty of small businesses out there that do nicely & compete daily with the multi nationals.
I guess it remains to be seen but with smart management running it i give it every chance,time will tell.

[TBM-Legend]

Remember who ever said that competition was good for business has never been in business! It's only good for the consumer...

So if we want a free market, let the games begin and to the winners go the spoils. I think QF won't blink and VA will be under the pump and start blaming everyone and REX well we know their style [leopards don't change their spots]

Good luck and it is keeping good people in a job...

[PPRuNeUser0161]

By the time QF and Virgin are finished with REX any moneys they received by way of government grants will pale into insignificance compared to the losses they'll be posting. Personally I can't wait for the show to begin!

SN

[havick]

By the time QF and Virgin are finished with REX any moneys they received by way of government grants will pale into insignificance compared to the losses they'll be posting. Personally I can't wait for the show to begin!

SN


Simply quoting this post to see how it ages.

[getaway]

By the time QF and Virgin are finished with REX any moneys they received by way of government grants will pale into insignificance compared to the losses they'll be posting. Personally I can't wait for the show to begin!

SNRecession means many will be chasing cheapest fares.

Rex & V@ have lower costs than wantus, so wantus will lose out & they won’t be getting any traffic anymore from Rex regional.

Rex & V2 won’t have union hassles that wantus already has.

[Ladloy]

Recession means many will be chasing cheapest fares.

Rex & V@ have lower costs than wantus, so wantus will lose out & they won’t be getting any traffic anymore from Rex regional.

Rex & V2 won’t have union hassles that wantus already has.
Rex in its current form has over 90% Union representation

[slice]

and make that almost 100% for V2 or V3 or whatever moniker it's given. And they will have plenty of Union hassles going forward.

[Colonel_Klink]

and make that almost 100% for V2 or V3 or whatever moniker it's given. And they will have plenty of Union hassles going forward.

Yeah...those pesky unions hassling Virgin by not bending over and taking Bain’s pineapple 🙄

[brokenagain]

Rex & V2 won’t have union hassles that wantus already has.

What sort of insight does a travel agent have into a companies union membership? Stick to hot travel deals BNEA320.

[getaway]

What sort of insight does a travel agent have into a companies union membership? Stick to hot travel deals BNEA320.
not a travel agent, but obviously airlines need travel agents more than ever now. Piss off a travel agent & an airline might not get any bookings from them.

[brokenagain]

not a travel agent

Your website, snoworld.com.au, suggests otherwise. And your (very public) FB page is full of the same crap you relentlessly post here.

[DanV2]

Your website, snoworld.com.au, suggests otherwise. And your (very public) FB page is full of the same crap you relentlessly post here.

Also to add BNEA320's (getaway) right-wing ramblings on the Executive Traveller forum under the 'regular flier' account.

[getaway]

Also to add BNEA320's (getaway) right-wing ramblings on the Executive Traveller forum under the 'regular flier' account.nope, you are confused.

[brokenagain]

nope, you are confused.

You literally post the exact same crap over there as you do here.

Same syntax, same aversion to using capitals, same made up acronyms (BUAs!!! :})

You should have stuck to dentistry.

[Transition Layer]

It seems Qantas is moving in on some more Rex turf!

Qantas to launch flights to Merimbula (https://www.qantas.com/agencyconnect/au/en/agency-news/agency-news-october-20/qantas-to-launch-flights-to-merimbula-in-time-for-summer.html)

[430W]

And so it starts just as it should. Will be more coming from QF I would think.

Competition at work as it should be. Will be interesting to see if Bain move in some way to place pressure on Rex

[wheels_down]

And so it starts just as it should. Will be more coming from QF I would think.

Competition at work as it should be. Will be interesting to see if Bain move in some way to place pressure on Rex

I don’t think we will see much competition from Virgin. Competitive advances initially is normally loss making. There won’t much expansion, just a basic and solid capital network with second tier cities that are proven profit machines.

[Traffic_Is_Er_Was]

It seems Qantas is moving in on some more Rex turf!

Be interesting to see how long these new routes last once the borders open and people can fly somewhere else, rather than just intrastate.

[TimmyTee]

Dummy spit! REX Withdrawing from the route due to the unfair competition from Qantas

https://www.begadistrictnews.com.au/story/6961487/qantas-will-start-flying-sydney-to-merimbula-but-rex-to-withdraw-from-route/?cs=12&utm_source=website&utm_medium=index&utm_campaign=sidebar

[blubak]

Dummy spit! REX Withdrawing from the route due to the unfair competition from Qantas

https://www.begadistrictnews.com.au/story/6961487/qantas-will-start-flying-sydney-to-merimbula-but-rex-to-withdraw-from-route/?cs=12&utm_source=website&utm_medium=index&utm_campaign=sidebar
Not sure how just still having 1 airline service the route increases competition.these government morons who bleat & chest beat about how good they are should actually read what they write before putting their mouth into gear,we are just paying for idiots.

[TimmyTee]

Can someone more in the know help shed light on where Rex plan to do all 737 training/endorsements/cyclic? What options do they currently have in Aus (considering borders are closed, that’s likely all they’ll have for a while)

[airdualbleedfault]

Good question Timmy and I'm guessing the owners of most of the 73 sims in Australia won't be too helpful, although Ansett has a 73 classic sim that's low utilisation

[hawk_eye]

Boeing have a 737 sim in Brisbane - and have today announced that they will be ceasing Operations at the end of the year.

Might be an opportunity to purchase that one...

[TBM-Legend]

Where was the Boeing Sim announcement?

[Turnleft080]

Boeing have a 737 sim in Brisbane - and have today announced that they will be ceasing Operations at the end of the year.

Might be an opportunity to purchase that one...
Might be an opportunity to throw on another 100 B737s on the Rex AOC and all of VA,TT any others crew jump ship and leave the Bainyanks with zero trained crew.
That will show the capital bastards. As I said, if that was to happen, now is the time. Long shot yes. Aviation is so unpredictable anything is possible.
Maybe PAG could pounce if they recongnise what's going on right now. Howzat for a funny post.

[brokenagain]

VA appearing to self destruct, Rex coming in with a new 737 startup operation. We could look back in years to come about Rex’s genius move, funnier things have happened.

[Rabbitwear]

VA appearing to self destruct, Rex coming in with a new 737 startup operation. We could look back in years to come about Rex’s genius move, funnier things have happened.
Similar to Virgins replacement of Ansett !

[galdian]

Ansett 737 SIM (assuming your talking dear old CZA) not upgraded so training tool only, not acceptable for checkrides.
Suppose someone wants to stump up the $$ to upgrade maybe but have to wonder how CASA would view an all NG operation wanting to use a classic 73 for checks.

Wise friend pointed out QF sim's are a separate entity/profit centre so if someone has the $$ to rent be hard for QF to say no, expect similar for VA equipment as with limited cash flow someone with $$ to spend becomes king.
Plenty of qualified pilots, some with C/T experience, just a matter for REX to decide their FLT OPS structure/personnel and square away with CASA.

To misquote Rachel Hunter "may not happen overnight...but it will happen".

[Arthur D]

Seriously.... having seen the ‘pitch’ for Project Mother, this has to be some sort of joke.

I hope REX have deeper pockets than $150m, because they are going to need it if they think a B737 is just a 174 seat SAAB.

[hotnhigh]

Ex virgin and indeed qf trainers lined up and working for Rex now. CASA Pre approvals pretty much complete.
Boeing sims available.
virgin chasing down the Bain lcc model. Never a better time.

[Double_Clutch]

What is the proposed FO pay?

[murder most fowl]

Ex virgin and indeed qf trainers lined up and working for Rex now. CASA Pre approvals pretty much complete.
Boeing sims available.
virgin chasing down the Bain lcc model. Never a better time.

Better get those sims done for Christmas.

[Acebucket]

What is the proposed FO pay?

Targeting 10% below Jetstar and 24% below the proposed VA pay scales.

Basically its the 2020 award figure, approx $108k base.

[speedbird983]

Anyone got a call yet? FOs or CAPT?

[galdian]

Doing interviews (at least for captains), initial is 1 hour Teams interview with CP and co-ordinator who's ex VA A330 and 737.
Courses already started, obviously for top of the pyramid and gradually will flow down to line grunts.

Just IMHO logically top pyramid (CASA delegations etc) whomever available from wherever, more choices for Check approvals from different organisations, more choices again for training experience, no reason why any further line positions wouldn't be primarily if not solely VA.

On their plans at present they only need maybe crew for 6 aircraft until easter 2021 so 30 captains and 30 f/o, as always maybe a few extra captains; should demand increase faster than expected their plans will modify.

Best of luck for those playing the game!

[hawk_eye]

Hearing on the grapevine a number of VA 737 FOs looking at the Rex option. Is this a case of out of the frying pan and into the fire with a lot of uncertainty about the operation or its longevity - or a case of a good opportunity to reset ones career prospects?

[havick]

Hearing on the grapevine a number of VA 737 FOs looking at the Rex option. Is this a case of out of the frying pan and into the fire with a lot of uncertainty about the operation or its longevity - or a case of a good opportunity to reset ones career prospects?

What have they got to lose?

[neville_nobody]

Exactly. If you were at the bottom of the seniority pile it would be definitely worth it because you won't be seeing a command at VA any time soon plus you still might be made redundant anyway.

[MelbourneFlyer]

Rex fo focus on SYD-MEL launch with all six of its ex-Virgin B737s, which "all date from the Virgin Blue era and carry an average age of 11.5 years", meaning that BNE and any other cities will come later and depend on demand and Rex getting more B737s: https://www.executivetraveller.com/news/rex-to-battle-qantas-virgin-on-sydney-melbourne-route

[Ladloy]

Rex fo focus on SYD-MEL launch with all six of its ex-Virgin B737s, which "all date from the Virgin Blue era and carry an average age of 11.5 years", meaning that BNE and any other cities will come later and depend on demand and Rex getting more B737s: https://www.executivetraveller.com/news/rex-to-battle-qantas-virgin-on-sydney-melbourne-route
They're barely flying saabs right now.

[Section28- BE]

'Shall' all, BE 'fixed'/all cool.... Apparently?????

Link: https://www.crikey.com.au/2006/07/04/john-sharp-from-rorting-minister-to-multi-millionaire/

and again, here: https://en.wikipedia.org/wiki/John_Sharp_(Australian_politician)

Navajo over KSA- PelAir NLK, etc. etc. etc....., ALL Bloody Good/Not a freakin Problem- Apparently????

rgds all
S28- BE

[dijical]

REX TAKES DELIVERY OF FIRST BOEING 737 (https://www.rex.com.au/BlobViewer/BlobViewer.aspx?attachtype=MR&filename=395A513949476B4C746952385A2F5639516955374E3945464D3 05035306C4A5A724F6176387832513432754E6B6A5074354C4B564631717 14C4172695451362B336E566E375465584B536F3D)

Rex Airlines has taken a huge step towards launching its domestic operations, with the delivery of its first Boeing 737-800 NG aircraft.The plane touched down in Sydney this afternoon.It’s the first of six 737s leased by Rex and will be used for training activities before the proving flight for the Civil Aviation and Safety Authority (CASA) on 5 December 20. Rex will begin flying Melbourne-Sydney return services on 1 March next year and to Brisbane from Easter.

Rex’s Deputy Chairman, the Hon John Sharp AM, said,“Rex has an18-year track record of leading On Time Performance and affordable fares in its regional services and for the first time the domestic market can look forward to a safe, reliable air service that is affordable.” “If our services prove successful, we will inject up to 10 aircraft into the domestic market by the end of 2021. From there, we intend to develop a full domestic airline network, linking all the capital cities over time.”

The livery for Rex’s domestic airline fleet will be released by the end of the month.

Tickets for Rex’s Melbourne-Sydney return services go on sale in early December, at www.rex.com.au.

[Section28- BE]

And- so, 'it' shall be........ (ref: the preceding post and Press Release).

We/You, Have 'all' been Told!!!!

rgds all
S28- BE

[Buster Hyman]

The livery for Rex’s domestic airline fleet will be released by the end of the month.
Anyone have any thoughts or knowledge of this?

[De_flieger]

Anyone have any thoughts or knowledge of this?
If I was a betting man, I'd say white with an orange and blue tail!

[wheels_down]

Looks like they are set to take some of the younger VA birds also. VUF is over 15 but the others they are taking are BSI’s.

[Turnleft080]

If I was a betting man, I'd say white with an orange and blue tail!

Dam, I was hoping for something like Braniff the Calder colours DC-8, Ecuatoriana B720, AeroCondor Colombia B720, AeroPeru DC-8
The 70s was a period where they splashed a lot of colour on aircraft not like today with a majority of pure white fuselages.

[Ladloy]

If I was a betting man, I'd say white with an orange and blue tail!
LNP logo on the tail

[MickG0105]

Tickets for Rex’s Melbourne-Sydney return services go on sale in early December, at www.rex.com.au.
If Rex want to make a serious play for the inter-capital market they are going to have to upgrade their website and get themselves a proper web-based booking engine. Their current website looks like it was put together back in 2005 by the work experience kid.

[Climb150]

Yes the mobile site is poor. The desktop view is ok but what with the banner showing unknown awards from 10 years ago?

It's like the fish and chip shop that still has newspapers clippings in the window from it's "Best local restaurant 1982" award.

[MelbourneFlyer]

Rex has announced it will add Brisbane to its Boeing 737 capital city network by Easter, which means in the first week of April: https://www.executivetraveller.com/news/rex-boeing-737-brisbane-sydney-melbourne-flights

[getaway]

up to 30, 40 or more jets by end of 2022, maybe

story in executive traveller today

"By the end of 2022... Rex’s ambition is to be a sizeable domestic airline operator with a fleet of 30 or maybe 40, maybe even more narrow-bodied single-aisle aircraft operating on the domestic network around Australia," Rex Deputy Chairman John Sharp elaborated.

Might be just stirring the pot.

[wheels_down]

Tiger said 30 Aircraft by 2011 too.

Once the lease fees creep up after the first few years fuel stabilises, like Tiger, along with the issues of a small fleet, the place falls apart.

The market here is relatively flat, the Tiger market share of a dozen aircraft will obviously be up for grabs, but anything above a dozen sounds risky.

[getaway]

Tiger said 30 Aircraft by 2011 too.

Once the lease fees creep up after the first few years fuel stabilises, like Tiger, along with the issues of a small fleet, the place falls apart.

The market here is relatively flat, the Tiger market share of a dozen aircraft will obviously be up for grabs, but anything above a dozen sounds risky.
this is NOT tiger/jetstar. Rex already have existing customer base & 50 plus aircraft. Virgin/Qantas will no longer get ANY rex regional passengers connecting to trunk routes.

Why would lease fees creep up ? If they are smart, they would lock in long cheap leases. What other choice do aircraft owners have ?

Wonder if they are hedging any fuel ? Of course that costs money, but can save a lot of money too. Southwest were huge on hedging fuel & it was said all their profits one year recently, were from hedging fuel.

[Ladloy]

this is NOT tiger/jetstar. Rex already have existing customer base & 50 plus aircraft. Virgin/Qantas will no longer get ANY rex regional passengers connecting to trunk routes.

Why would lease fees creep up ? If they are smart, they would lock in long cheap leases. What other choice do aircraft owners have ?

Wonder if they are hedging any fuel ? Of course that costs money, but can save a lot of money too. Southwest were huge on hedging fuel & it was said all their profits one year recently, were from hedging fuel.
Leases are 60k a month per aircraft. Not sure what pre covid prices were.

[Inthestreet]

Do you really think QF, JQ and VA are going to let this happen. This market will always be a duopoly! QF won’t give up 70% market share and Bain need a duopoly to sell VA for max $$ in 4 years. Ground and pound.....poor Rex. All new hires at Rex are not eligible for job keeper, how has Mr Sharp got around this?

[Section28- BE]

Well, the 'Sharpie & Co' have certainly remediated the Share Price back to near the 52 week peak, from the dark days of shutting the doors back in March.....

Last traded at: $1.45

ASX Link: https://www2.asx.com.au/markets/company/REX

52 week range: 0.370 - 1.550

rgds all
S28- BE

[PPRuNeUser0131]

"Damn, I was hoping for something like Braniff the Calder colours ..."How about this (the attachment; pasteing photos is an art I do not possess)?

The photo is of a postcard given to me by my mother after a trip to the USA back in the late 70s.

It pays to be a magpie hoarder; this is the first time in 44 years the postcard has seen the light of day.

[wheels_down]

Leases are 60k a month per aircraft. Not sure what pre covid prices were.

Leasing companies at the moment are not discounting beyond 2021. For obvious reasons also around early vaccine access and market pickup.

Currently looking at 40-50% reduction at the moment.

[MelbourneFlyer]

So Rex now says it will offer business class on its B737s, will be almost full service and better than Virgin but as cheap as Jetstar, and if the triangle launch with nine daily SYD-MEL return flights at launch. And if the triangle goes well it wants to end up with 30-40 B737s covering all capital cities: https://www.executivetraveller.com/news/rex-confirms-business-class-eyes-flights-nationwide

Whatever they're smoking, I'll have some!

[-41]

Only need to offer a meal and drink service to defeat Bain.

[getaway]

So Rex now says it will offer business class on its B737s, will be almost full service and better than Virgin but as cheap as Jetstar, and if the triangle launch with nine daily SYD-MEL return flights at launch. And if the triangle goes well it wants to end up with 30-40 B737s covering all capital cities: https://www.executivetraveller.com/news/rex-confirms-business-class-eyes-flights-nationwide

Whatever they're smoking, I'll have some!
Could work as long as they keep their costs under control. Remember they already have all office positions, so no duplication, just few more staff. Not like they are starting a whole new airline. Similar in a way to Jetstar. Am sure they use a lot of qantas back office, maybe even engineering ?

The "parsley" on qantas is very VERY expensive & do you necessarily want that for a 1 hour flight ?

[Colonel_Klink]

Leasing companies at the moment are not discounting beyond 2021. For obvious reasons also around early vaccine access and market pickup.

Currently looking at 40-50% reduction at the moment.

My understanding is Rex have the 737s at $60k a month for the first 12 months, increasing to $100k a month after that

[wheels_down]

So Rex now says it will offer business class on its B737s, will be almost full service and better than Virgin but as cheap as Jetstar, and if the triangle launch with nine daily SYD-MEL return flights at launch. And if the triangle goes well it wants to end up with 30-40 B737s covering all capital cities: https://www.executivetraveller.com/news/rex-confirms-business-class-eyes-flights-nationwide

Whatever they're smoking, I'll have some!
Sounds like the same thing Virgin was smoking a decade ago.

‘Jetstar Prices, Better than Virgin experience’
Righto.....😳

I hope they know what they are doing, well, it has the ability to send the whole operation under if they don’t.

[Section28- BE]

"Pending Market Conditions"......

rgds
S28- BE

[blubak]

this is NOT tiger/jetstar. Rex already have existing customer base & 50 plus aircraft. Virgin/Qantas will no longer get ANY rex regional passengers connecting to trunk routes.

Why would lease fees creep up ? If they are smart, they would lock in long cheap leases. What other choice do aircraft owners have ?

Wonder if they are hedging any fuel ? Of course that costs money, but can save a lot of money too. Southwest were huge on hedging fuel & it was said all their profits one year recently, were from hedging fuel.
Lots of smart business facts in this post,many may not like how Rex have cried poor & now appear to be doing quite well but they are still going & now employing guys who otherwise would be on unemployment benefits.
Jetstar is propped up by its parent & creative accounting can produce results to suit the occasion so for me its a no brainer for Rex to move forward & make a success of it.
Again,the guys getting a pay cheque every week is who we should be happy for.

[Ladloy]

Lots of smart business facts in this post,many may not like how Rex have cried poor & now appear to be doing quite well but they are still going & now employing guys who otherwise would be on unemployment benefits.
Jetstar is propped up by its parent & creative accounting can produce results to suit the occasion so for me its a no brainer for Rex to move forward & make a success of it.
Again,the guys getting a pay cheque every week is who we should be happy for.
Spoke to a rex mate last week. Most saab guys are working conveniently under their respective jobkeeper thresholds while management are too busy staring at their shiny jet to see qlink eating into the market share.

[Ragnor]

I hope they know what they are doing, well, it has the ability to send the whole operation under if they don’t.

This will not happen, Sharpie will run to Big Mac and he will bail them out

[getaway]

This will not happen, Sharpie will run to Big Mac and he will bail them out
the last thing Qantas & V2 want is a price war on golden triangle, so am sure there will be lots of freebees thrown around like frequent flyer points, entry to Q club, discounts on stuff.

Would not be surprised if Qantas/V2 introduced a "B class" frequent flyer point, which can only be used on that airline & not in peak hour & give it a name which sounds better than "A class" ff points.

& both Q/V2 will try & lock in as many leisure travellers as possible on SYD/MEL route ASAP, so doesn't matter how cheap Rex are, those passengers will be flying Q/v2.

[wheels_down]

The loser here could be Jetstar, well on the revenue front. Rex wants baggage and more legroom at Jetstar prices. Virgin comes into play with an expected ‘Basic Economy’ like Delta apparently in the works, so the cheapest fare could be at Jetstar levels. Why fly Jetstar with a $30 baggage fee?

Its going to be interesting to watch, a lot more so compared to what Tiger ever did to the market, which was sweet F all.

[Buttscratcher]

All this is bullish!t until they actually get their high capacity jet AOC.
I'm sure CASA are willingly handing them out to every starry-eyed entity that drifts through their transom.
........especially with the array of recent business failures.

[getaway]

All this is bullish!t until they actually get their high capacity jet AOC.
I'm sure CASA are willingly handing them out to every starry-eyed entity that drifts through their transom.
........especially with the array of recent business failures.
don't you think with the deputy chairman being an ex fed transport minister & close links to national party helps enormously ?

[Buttscratcher]

We shall see.....but it ain't as easy as y'all suggest.

[MelbourneFlyer]

LOL, Rex has got VH-BZG, aka "Brett's Jet": https://www.executivetraveller.com/news/rex-snares-the-boeing-737-of-virgin-australia-co-founder-brett-godfrey

Also check this out:

Curiously, Rex's fleet delivery schedule indicated that BZG – which like most of the initial Boeing 737s is being leased from Castlelake – would have its registration changed to MFM.
Those are notably the initials of Michael Francis McCormack: Australia's Deputy Prime Minister, National Party leader, proud son of Wagga Wagga and federal member for the local electorate of Riverina.
However, a spokesman for Regional Express told Executive Traveller that the first six Boeing 737s would all follow the airline's convention of registrations beginning with the letter R.


Imagine the outrage if Rex basically 'named' a jet for McCormack!

[Lookleft]

I wouldn't be writing Jetstar off. They, like their parent company, are a ruthless bunch and they are good at what they do. Don't forget that Jetstar was set up to counter Virgin and you could easily say mission accomplished. Tiger was the next one to go and they were never in the game. As for Rex they might know regional operations but HCAOC is the next level and if they think that it is just a matter of upscaling a turboprop operation then they will be the big loser. For better or for worse Jetstar has brand recognition and anyone wanting to fly will want to know that the seat they have purchased will be around for the long term.

[Buttscratcher]

Here's what I see.
In the middle of the Covid shutdown, REX is granted a huge chunk of funding to maintain Regional QLD RPT services.
During this time, and after years of debilitating losses, Virgin finally goes tits-up.
Thinking that they can do a better job with the exact type of aircraft, no experience and AOCs they don't have, REX announce 'hold my beer, I got this'.
...and everyone rejoices

[On eyre]

Here's what I see.
In the middle of the Covid shutdown, REX is granted a huge chunk of funding to maintain Regional QLD RPT services.
During this time, and after years of debilitating losses, Virgin finally goes tits-up.
Thinking that they can do a better job with the exact type of aircraft, no experience and AOCs they don't have, REX announce 'hold my beer, I got this'.
...and everyone rejoices

Six months max

[Section28- BE]

Shall 'drop' this here as information (have, put 'it' on the V3 thread- as well).

news.com.au link here: https://www.news.com.au/travel/travel-advice/flights/flight-sale-frenzy-as-virgin-offers-halfamillion-fares-from-75/news-story/b81fd0569f5406144744587da6cf7216

Extract of the 'Interesting' bit:The sale is available on the following routes:

Sydney

Sydney – Byron Bay (Ballina) from $75

Sydney – Gold Coast from $79

Sydney – Coffs Harbour from $89

Sydney – Sunshine Coast from 89

Sydney – Melbourne from $99

Sydney – Adelaide from $119

Sydney – Perth from $169

Melbourne

Melbourne – Launceston from $79

Melbourne – Adelaide from $89

Melbourne – Newcastle from $89

Melbourne – Hobart from $99

Melbourne – Sydney from $99

Melbourne – Gold Coast from $119

Melbourne – Canberra from $119

Melbourne – Sunshine Coast from $129

Melbourne – Perth from $169

Brisbane

Brisbane – Newcastle from $89

Brisbane – Proserpine from $89

Brisbane – Sydney from 89

Brisbane – Mackay from $99

Brisbane – Rockhampton from $99

Brisbane – Cairns from $109

Brisbane – Hamilton Island from $115

Brisbane – Hobart from $139

Brisbane – Launceston from $159

Adelaide

Adelaide – Melbourne from $89

Adelaide – Sydney from $119

Adelaide – Gold Coast from $129

Adelaide – Brisbane from $129

Adelaide – Hobart from $169

Adelaide – Alice Springs from $169

Adelaide – Perth from $169

Canberra

Canberra – Sydney from $89

Canberra – Melbourne from $119

Canberra – Gold Coast from $139

Perth

Perth – Port Hedland from $119

Perth – Kalgoorlie from $149

Perth – Newman from $199

Perth – Karratha from $199

Perth – Sydney from $169

Perth – Melbourne from $169

Perth – Adelaide from $169

Hobart

Hobart – Melbourne from $99

Hobart – Sydney from $119

Hobart – Brisbane from $139

Launceston

Launceston – Melbourne from $79

Launceston – Sydney from $109

Launceston – Adelaide from $159

Darwin

Darwin – Brisbane from $169

Darwin – Sydney from $199

Darwin – Perth from $199

Alice Springs

Alice Springs – Adelaide from $169

Welcome to the 'Shark-Tank'- Michael & John and run some 'Numbers' on this 'stuff'... pending "Market Conditions" or not.....????

be well/
rgds all
S28_ BE

[Ragnor]

Jetstar can go as low as $19 AJ said himself. How long will it be before Sharpie lobbies MM for subsidised triangle for Rex.

[wheels_down]

Jetstar is successful because they have a large share (well now monopoly) of the low cost market across the domestic network, with many routes that not even Virgin will attempt. They also have some serious frequency on many leisure routes. The brand also has a higher percentage of brand awareness in the industry segment compared to Virgin.

Rex also is a brand that not many people would be aware of. They don’t even have a Facebook page, and I assume they don’t even have a marketing department. You don’t think Rex when you want to fly to Sydney just like corporates never considered Tiger for any routes. It doesn’t even pass your mind, you just book with QF or VA.

Sharpie seems very confident. Perhaps he sees something we don’t.

[Section28- BE]

...... Sharpie seems very confident. Perhaps he sees something we don’t.

Very Good Point !!!!- what 'he' sees- verse the, and/Or what 'the Sharpie' does 'Know' as actual Fact....., at this point in time!!!!!

Reckon, ripper question- or NOT!!!
rgds all/be well
S28- BE

[430W]

Well if a rumour I have heard of the EX minister for transport and travel rorts has with regards his involvement and problems in Skytraders is true I would think Mr. Sharp may find he has trouble finding LNP friends to help with this little venture as they head for the hills. Sounded very messy.

[getaway]

Jetstar is successful because they have a large share (well now monopoly) of the low cost market across the domestic network, with many routes that not even Virgin will attempt. They also have some serious frequency on many leisure routes. The brand also has a higher percentage of brand awareness in the industry segment compared to Virgin.

Rex also is a brand that not many people would be aware of. They don’t even have a Facebook page, and I assume they don’t even have a marketing department. You don’t think Rex when you want to fly to Sydney just like corporates never considered Tiger for any routes. It doesn’t even pass your mind, you just book with QF or VA.

Sharpie seems very confident. Perhaps he sees something we don’t.
when you say

when you want to fly to SYD, the routes Rex currently flies don't have much competition except for likes of ABX & DBO to SYD & probably some others. Virgin won't be flying ABX/SYD anymore unless Alliance does for them using F50/70/100 or E190.

[Section28- BE]

REX- ASX announcement (19/11/20) link here: https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02310909-2A1264783?access_token=83ff96335c2d45a094df02a206a39ff4

A brief extract:

19 NOVEMBER 2020-
ASX RELEASE: REX SIGNS BINDING AGREEMENT WITH PAG ON FUNDING FOR DOMESTIC JET OPERATIONS

Rex today announced that it had signed an agreement with PAG Regulus Holdings Pte Ltd (PAG), a subsidiary of leading Asia-Pacific focused investment firm PAG that will see an investment by PAG of up to AUD150 million to be used exclusively to support the launch of Rex’s domestic jet operations scheduled to commence on 1 March 2021 (Funding).......

Subject to Shareholder and FIRB approvals, etc.

rgds
S28- BE

[1A_Please]

when you say

when you want to fly to SYD, the routes Rex currently flies don't have much competition except for likes of ABX & DBO to SYD & probably some others. Virgin won't be flying ABX/SYD anymore unless Alliance does for them using F50/70/100 or E190.
That is because REX usually runs away from competition. It is going to find the rough and tumble world of mainline operations very hard and will lose millions along the way. I wish the employees of REX all the best but if they try to make you take shares in lieu of salary...DON'T!!!

[Arnold E]

That is because REX usually runs away from competition. It is going to find the rough and tumble world of mainline operations very hard and will lose millions along the way. I wish the employees of REX all the best but if they try to make you take shares in lieu of salary...DON'T!!!
What makes you think that REX would try that on? There is no history of that.

[getaway]

What makes you think that REX would try that on? There is no history of that.
think Rex will take market share on golden triangle mostly off qantas.

Chief of ANZ said few days again, that recession will really kick in middle of next year when no more jobkeeper/jobseeker & dole returns to previous levels. Even jobmaker is only $200/week maximum for those of certain age.

[WipperSnapper]

What makes you think that REX would try that on? There is no history of that.
Like July? https://australianaviation.com.au/2020/07/qantas-under-fire-over-predatory-sydney-orange-route/

[1A_Please]

think Rex will take market share on golden triangle mostly off qantas.

Chief of ANZ said few days again, that recession will really kick in middle of next year when no more jobkeeper/jobseeker & dole returns to previous levels. Even jobmaker is only $200/week maximum for those of certain age.
QF will use a classic pincer movement from both QF mainline and JQ to make life exceedingly difficult for Rex. Rex has chosen a market position where it is poorly differentiated and only has price to trade on. This is a very dangerous position to be in. If I'd been them, I'd have gone the ULCC route which maybe unfashionable but is currently unoccupied.

[ScepticalOptomist]

think Rex will take market share on golden triangle mostly off qantas.


Im all for REX giving it a go, but when things get tough, I don’t see QF losing.

[wheels_down]

Im all for REX giving it a go, but when things get tough, I don’t see QF losing.
Yep.

Fuel jumps, Rex sinks. Tiger had SIA to cover these issues when fuel went to $130 a decade ago, QF and VA had profitable cores to offset.

Rex hasn’t really got anything. It’s not like they can raise prices or chase corporate contracts off the opposition.

Quote:
Originally Posted by getaway
think Rex will take market share on golden triangle mostly off qantas.
Don’t be so sure. Post Covid the Qantas and Virgin experience on say Melbourne to Sydney won’t change at all. The only thing Virgin is doing is dropping the free snack. It’s not changing it’s lounges, baggage, or frequency. Don’t underestimate the power of those two on the triangle. I would be very mindful reading into the Virgin fear that has been spread into the market from various uninformed experts and competitors. That’s what Rex wants to believe, reality will be different. Alan and Jayne are ruthless operators who won’t let some token operator like Rex get in their way.

Rex might get the Tiger traffic. They might perhaps get some Jetstar traffic should they bother to update the website, FF program and IT. However that costs money.

[MickG0105]

REX- ASX announcement (19/11/20) link here: https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02310909-2A1264783?access_token=83ff96335c2d45a094df02a206a39ff4
...
rgds
S28- BE
In their press release Rex say,
Preparations for our domestic operations are proceeding to plan with our first Boeing 737 800NG aircraft delivered on 5 November 2020. Our crew will carry out training on the aircraft over the next three weeks before the CASA proving flight on 2 December 2020. We anticipate CASA approval shortly after.

Is that a realistic timetable?

[PoppaJo]

In their press release Rex say,


Is that a realistic timetable?

Seems tight. Tiger had 8 weeks on the ground with the aircraft here and 6 months of prior planning. It was pushed back a touch due to tight timing. Yes we are not talking about a new airline here, but they don’t have any jet foundations in place.

I guess this whole thing is essentially Virgin processes etc, and people involved, already familiar to CASA. I’d be interested to know how much of this is from Virgin’s book.

They wouldn’t be the first to not get it on the first go. Only one has successfully managed to get the green light on the first go. Looks like they have plenty of wriggle room until ops start.

[MickG0105]

Seems tight. Tiger had 8 weeks on the ground with the aircraft here and 6 months of prior planning. It was pushed back a touch due to tight timing. Yes we are not talking about a new airline here, but they don’t have any jet foundations in place.

I guess this whole thing is essentially Virgin processes etc, and people involved, already familiar to CASA. I’d be interested to know how much of this is from Virgin’s book.

They wouldn’t be the first to not get it on the first go. Only one has successfully managed to get the green light on the first go. Looks like they have plenty of wriggle room until ops start.
Thanks for that.

Given that certification is just one of many workstreams associated with the starting commercial jet ops in about 100 days time it would be interesting to know who Rex has got managing this at a program level. This is probably two orders of magnitude more complicated and more complex than anything Rex have had to deal with in the last decade or so.

[PoppaJo]

Thanks for that.

Given that certification is just one of many workstreams associated with the starting commercial jet ops in about 100 days time it would be interesting to know who Rex has got managing this at a program level. This is probably two orders of magnitude more complicated and more complex than anything Rex have had to deal with in the last decade or so.
I assisted the Tiger startup, getting up and running is one thing, however the biggest challenge is maintaining that standard, things started to crumble about 12 months in, and well, caved in, 24 months in, as we all watched on. The problems started to appear when the fleet creeped up, and good people starting leaving. Company underinvested in the training department, which couldn’t handle the fleet and people increase.

I note some from Virgin only went over on temp contracts. If/When all these people start to leave, which is common in any new startup, usually about 2 years in, can the place follow the book as good as it did on day 1?

The training and safety departments are going to be super busy. When does the ATR start arriving? I hope Sharp is ready to invest in his Pilots. Otherwise the whole place will fall over and safety bureau will be super busy.

[Buster Hyman]

The problems started to appear when the fleet creeped up, and good people starting leaving. Company underinvested in the training department, which couldn’t handle the fleet and people increase.
Didn’t help when the experienced people that did remain were sidelined and ignored. A plan was in place to fix the situation in HQ but that was also ignored.

Cest la vie!

[wheels_down]

Didn’t help when the experienced people that did remain were sidelined and ignored. A plan was in place to fix the situation in HQ but that was also ignored.

Cest la vie!
That place went down the ****ter once Ken retired. They deserve everything they got and the only ones who would disagree would be those poms.

Beyond me how it ever got as far as it did.

[Section28- BE]

............
I guess this whole thing is essentially Virgin processes etc, and people involved, already familiar to CASA. I’d be interested to know how much of this is from Virgin’s book.

They wouldn’t be the first to not get it on the first go. Only one has successfully managed to get the green light on the first go. Looks like they have plenty of wriggle room until ops start.

'That' Statement (above)- right there, 'Is' where the rubber shall meet the road.......

Too much 'Copy & Paste'- then, Good Luck.....???? (and Go 'the Sharpie'...!!!!!.)

rgds all
S28- BE

[morno]

Tiger tried copy and paste with their 737’s using Virgin procedures, CASA said no

[Section28- BE]

52x Week range: "52 week range 0.370 - 1.600"

Last at: $1.59........

90 Day Graph here: https://www2.asx.com.au/markets/company/REX

Blow that sucker (graph) out........, IS All Good- get, On-Board !!!!, at speed, 'Apparently'..........

Ya just Gotta 'Lurve' & 'Appreciate'- this Werk/Gig, reckon!!!!! or Not?????

rgds all
S28-BE

[whisperjet146]

I assisted the Tiger startup, getting up and running is one thing, however the biggest challenge is maintaining that standard, things started to crumble about 12 months in, and well, caved in, 24 months in, as we all watched on. The problems started to appear when the fleet creeped up, and good people starting leaving. Company underinvested in the training department, which couldn’t handle the fleet and people increase.

I note some from Virgin only went over on temp contracts. If/When all these people start to leave, which is common in any new startup, usually about 2 years in, can the place follow the book as good as it did on day 1?

The training and safety departments are going to be super busy. When does the ATR start arriving? I hope Sharp is ready to invest in his Pilots. Otherwise the whole place will fall over and safety bureau will be super busy.

was also wondering how the ATR introduction was going 🤔

[B772]

I understand the CASA proving flight to add the B737-600/700/800/900 to the Rex AOC is scheduled for Wednesday 02 December.

[transition_alt]

The new Rex website is up with Sydney - Melbourne fares available to book.

Very decent prices. Should hopefully shake up the market

[getaway]

The new Rex website is up with Sydney - Melbourne fares available to book.

Very decent prices. Should hopefully shake up the market
had a quick look, but site wouldn't accept any dates in March. What dates did you look at ?

Maybe site is overwhelmed ? or has been hacked already ? Has someone at some airline employed hackers ? Never

Remember Compass Mark 1, had a 1800 number or was it 008 in those days.

Res people kept answering the phones & no one there. Obviously a computer just kept redialing the free call number over & over & over again to try to stuff up passengers trying to book, who couldn't get through on phones.

[getaway]

Tiger tried copy and paste with their 737’s using Virgin procedures, CASA said noso they had to change a few words ? Seriously, what's the difference ?

[getaway]

Jetstar can go as low as $19 AJ said himself. How long will it be before Sharpie lobbies MM for subsidised triangle for Rex.
Jetstar won't be allowed to go under a certain figure on the triangle or grt frequency too high, however AVV is not considered part of the triangle, so can see plenty of cheap fares out of AVV & not so much out of MEL, esp in peak hour Mon-Fri.

Maybe even some more nonstop flights out of AVV for the price conscious.

Can see the carpark at AVV getting bigger & bigger & if you park a loooong way away, it might actually be relatively cheap.

It's amazing how many people will drive hours to save 5 bucks. They don't value their time or don't realise the costs of driving, are not the fuel costs alone.

Southwest works off the now proven theory, that many millions in USA will drive 2 hours, but not anymore, to save on airfares. Canadians even used to cross border into USA to save on airfares.

Yanks living south of LA will also cross border on foot, at San Diego cross border xpress facility to save on airfares to other parts of Mexico & China (TIJ did have nonstop flights to China before Corona)

https://cimg8.ibsrv.net/gimg/pprune.org-vbulletin/796x525/cbx_looking_from_usa_side_border_obvious_in_mid_ground_8cc16 67b7f369a1baf19a1a78dfd31af8a48ceb1.png
CBX facility from San Diego side, showing pedestrian bridge over the border. 2 other similar situations exist in EU.

https://cimg9.ibsrv.net/gimg/pprune.org-vbulletin/868x651/cbx_left_for_mexico_right_for_usa_3e16e60e7d4a1cd811178a846f 622cd130e5fe4d.png
when arriving back at TIJ from China or other parts of Mexico, after you collect your bags, you can then walk across the pedestrian border via bridge by turning right to go to San Diego or left to stay in Mexico. No crowds, just airline passengers.


https://cimg2.ibsrv.net/gimg/pprune.org-vbulletin/1357x690/cbx_overhead_photo_183463fcf71e6ca78730dcfeae162658949302fe. jpg
CBX overhead. North is up. USA on top, Mexico & TIJ terminals at bottom.

[dijical]

REX's new website has gone live. It looks somewhat modern.

www.rex.com.au (https://www.rex.com.au/)

Selling economy from $99 and also Business.

[dijical]

Also they have images of the new livery.
https://cimg1.ibsrv.net/gimg/pprune.org-vbulletin/1004x363/screenshot_from_2020_12_01_13_16_45_2d94d6ec9e138da49f38cdfe b4684b15fc51a28b.png

[jrfsp]

I think it surprisingly looks good

[getaway]

REX's new website has gone live. It looks somewhat modern.

www.rex.com.au (https://www.rex.com.au/)

Selling economy from $99 and also Business.
can't get it to work on my computer, using Chrome & other.

Rex better sort this out quickly.

Will try my dumb phone.

EDIT - nope, can't book on phone either

[dijical]

I'm having no problems on Firefox, seems ok with chrome too.

[getaway]

I'm having no problems on Firefox, seems ok with chrome too.
finally worked.

Seems a little clunky. Needs to click on a date & then confirm that date (why 2 clicks), pick a far then confirm it (another 2 clicks)

So Mon 1 MAR
SYD/MEL 0710/0850
+
MEL/SYD 1700/1830

for $198

Obviously 1 MAR is 3 months away & won't be any $198 return fares left soon, but wonder what QF/VA doing same dates ?

Bet there will be a lot of bosses saying book that day trip to MEL or SYD earlier to save big bucks.

So know they have to fly months out, some few days out, but the simple answer to saving big dollars is to book a long way ahead.

Also noticed

https://cimg3.ibsrv.net/gimg/pprune.org-vbulletin/344x68/get_me_home_da1418851d96af1cceb565becc02a04480bf48f9.jpg

which is a good idea to have it mentioned up front. $55 is nothing to most business people

QF not matching, which seems crazy. For same flights as above QF $199 + $135.

Ok so Rex might not have many seats at this price, but QF have none.

VA $119 each way for same flights.

What are people at QF/VA doing ? Are they asleep ?

retail 101 - match the opposition in price. No one except each airline & travel agents know how many seats at that price, but it's giving a free leg up to Rex. (travel agents can see 7 or 9 seats max, but if they book 7 or 9 they can see how many more - they could book any number & simply cancel them at no cost to them, but if they did it too often QF/VA might ban them as a Rex stooge)

Was once trying to corner the market on sale fares to LAX (needed around 20 seats). Contacted travel agent & they "found" 18 cheap seats, by booking 9, then another 9, then none left. They said they could hold them for day or so, but when they cancelled them, they might not reappear. (some airlines apparently make it easy to make name changes on bookings not paid for, other don't allow it at all)

Expect on tonights news, stories about Rex's SYD/MEL/SYD fares cheaper than QF & VA & lots of them (whatever lots means)

Wake up QF/VA yield managers.

[Chris2303]

can't get it to work on my computer, using Chrome & other.

I'm in NZ and have no problem getting on to https://www.rex.com.au/

[wheels_down]

The flexibility around some of those fares is quite attractive considering Virgin want a arm and leg if you want to change something, at a similar and even double the Rex price.

I see zero reason here to fly Jetstar if your taking baggage. Interesting to note the other fare bucket below the current advertised which also includes free baggage.

[Ragnor]

I see zero reason here to fly Jetstar if your taking baggage. Interesting to note the other fare bucket below the current advertised which also includes free baggage.

Baggage only appears to be included if you’re connecting to or from a regional/domestic service either way you are paying for it on one or the other 15kg regional or 23kg domestic.

They didn’t have many, if any at all at the community rate sold out already I call BS on that.

QF should be outraged at them selling business class at $299.00 as getaway mentioned JQ wouldn’t be allowed to go below a certain figure (apparently) how are Rex able!

Best of luck to them anyway QF, VA and JQ will have that Rex jet operation on it knees in no time.

[transition_alt]

Baggage only appears to be included if you’re connecting to or from a regional/domestic service either way you are paying for it on one or the other 15kg regional or 23kg domestic.

They didn’t have many, if any at all at the community rate sold out already I call BS on that.

QF should be outraged at them selling business class at $299.00 as getaway mentioned JQ wouldn’t be allowed to go below a certain figure (apparently) how are Rex able!

Best of luck to them anyway QF, VA and JQ will have that Rex jet operation on it knees in no time.

You seem very salty...

For VA, it would be in their best interests to support Rex as they have already announced they are reducing marketshare. If they were smart, that marketshare should not go to QF (being the "super power" that they are).
The retained interline agreements between VA and ZL suggest they are still in good terms with each other also.

It would be very easy for Bain/Virgin to allow the Rex expansion to occur and later buyout either the domestic operation or the entirety of Rex to regain marketshare in years to come, once debt is paid down.

[neville_nobody]

It would be very easy for Bain/Virgin to allow the Rex expansion to occur and later buyout either the domestic operation or the entirety of Rex to regain marketshare in years to come, once debt is paid down.

Assuming the owners will sell to them and not someone else who might be interested in running an airline in Australia.

[Beer Baron]

What are people at QF/VA doing ? Are they asleep ?

retail 101 - match the opposition in price.
They are not selling a loaf of bread. There is a bit more to airline yield management then simply having the lowest price.

Which airline in Australia has been the most profitable domestically for the last few years? Are they the cheapest??

Business travellers are going to be somewhat wary of the fact that they need to wait 3 hours between flights. Meeting goes long, wait 3 hours for the next flight (if you get on). Afternoon meetings are cancelled, still need to wait 3 hours for your original service. Do they have 10 million credit card points that get them into the Rex lounge while that wait, oh probably not as they have a Velocity or Qantas FF account instead.

Not saying they won’t grab some market share and do it profitably but I hardly think the incumbents need to react too radically.

[getaway]

Baggage only appears to be included if you’re connecting to or from a regional/domestic service either way you are paying for it on one or the other 15kg regional or 23kg domestic.

They didn’t have many, if any at all at the community rate sold out already I call BS on that.

QF should be outraged at them selling business class at $299.00 as getaway mentioned JQ wouldn’t be allowed to go below a certain figure (apparently) how are Rex able!

Best of luck to them anyway QF, VA and JQ will have that Rex jet operation on it knees in no time.
think many corporate financial controllers have been told to tighten their companies belts.

This could mean keeping a much closer eye on travel spends.

If Rex are significantly cheaper than Qantas & still less than Virgin, staff might be told to fly Rex.

Qantas has a staff costs problem, too many staff paid way too much. Sounds like more will be contracted out.

[B772]

Looks like Rex may have a few glitches in their availability. I tried to book KNS to SYD one way without success.

[wheels_down]

Not saying they won’t grab some market share and do it profitably but I hardly think the incumbents need to react too radically.
Are they not just essentially picking up the Tiger market share? Tiger had 9 flights a day ML-SY and
so does Rex.

I’m not sure who they are targeting here but it won’t be big corps. Won’t be pulling anybody away from those four flights every hour from the Virgin terminal.

I think they are targeting Grandma Betty who is travelling down to Melbourne to mind the grandkids, who refuses to fly Budget Airways. The Euro travellers will still fly Jetstar even if its $2 cheaper.

This is they issue Tiger was having with a flight every few hours. Only need to peek inside the gate area to see the target traveller. Chinese Tourist, Euro Travellers, Penrith/Wyndham residents, or Mum and Dad with ten kids under 5.

[Ragnor]

You seem very salty...



No not at all, but, one set a rules for one and another for Rex. They want to play with the big 3 they need to play by the same rules. I do believe this operation will not go the distance, for many reasons I’m sure I’m not the only one that thinks the same. VA (Bain) wanting to buy Rex at a later date I doubt that also as Bain won’t be around long enough.

Yeah company’s might get their staff to travel Rex as it’s cheaper that won’t last long either on A/C goes tech weather phenomena in ML or SYD creating delays etc Rex will not be able to recover due infrastructure hence they will all go back to VA, QF and even maybe JQ to save a few dollars for realisability

[PoppaJo]

They said they would offer fares at Jetstar prices did they not? Jetstar’s lead in fares are $75 Tulla and $51 over at the You Yangs.

Jetstar is 18 flights a day each way including Avalon, largely A321 also. Tough task ahead, especially on non peak days where the guys at the loco over the fence will price them out of the water.

[Section28- BE]

Announcement, ex The ASX- 01/12/2020 @ 7:09:36 pm: "REX Launches between Sydney and Melbourne, Tickets on Sale"

Link here: https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02317006-2A1267452?access_token=83ff96335c2d45a094df02a206a39ff4

the 'Sharpie' - on Deck.......!!!!
rgds all
S28- BE

[Wingspar]

"We’re a Qantas with a Jetstar price," Mr Sharp said.

If you’re going to commit to millions of dollars you have to be realistic! Is Rex really a ‘Qantas’?

[Section28- BE]

AFR article link: https://www.afr.com/companies/transport/rex-takes-on-virgin-with-79-melbourne-sydney-flights-20201202-p56jry

rgds
S28- BE

an Extract:Rex takes on Virgin with $79 Melbourne-Sydney flightsLucas Baird (https://www.afr.com/by/lucas-baird-h18hts) Reporter
Dec 2, 2020 – 8.23am

Regional Express will expand its fleet to five Boeing 737 planes by Easter next year as it looks to launch inter-state services into Brisbane and take on Qantas and Virgin on the lucrative "golden triangle" routes.

It marks the first time the traditionally rural-focused carrier has outlined its plans beyond the initial Melbourne-Sydney service it will launch in March.

Tickets went on sale on Wednesday. Prices start at $79 for economy seats but stretch to $299 for the eight business class seats on each flight.

This cost is cheaper than a Virgin flight at a similar time and positions Rex's fares more in line with Qantas' budget offshoot Jetstar. Virgin has embarked on a new mid-market strategy post-administration. (https://www.afr.com/link/follow-20180101-p56fky)

"We will be offering premium full service with our trademark country hospitality but at fares pegged at the budget carrier level," Rex deputy chairman John Sharp said.

Mr Sharp said all fares would include checked baggage allowance, pre-assigned seating and food.

Business-class passengers will get automatic access to lounges in Sydney, Melbourne, Adelaide and in-flight wi-fi. Economy passengers can gain entry into the lounges through a $33 two-hour pass or $329 annual membership.

Rex, which was in a dire state at the start of the pandemic before it received $62 million of government aid last financial year (https://www.afr.com/companies/transport/rex-slumps-to-19m-loss-despite-handouts-20200901-p55r5y), signed a deal with Asian investment giant PAG for $150 million to fund the expansion.

The terms of the agreement could see PAG eventually own half of Rex (https://www.afr.com/companies/transport/rex-may-give-half-its-capital-to-asian-group-to-fund-city-routes-20200922-p55xyv), assuming there are no drastic changes to the company's capital structure.

Rex said it will eventually build its inter-state fleet to include up to 10 737s after it acquired its first – an ex-Virgin aircraft – in early November.

"The first three Rex Boeing 737-800s will take off between Sydney and Melbourne on 1 March 2021. Rex will begin with 9 Sydney-Melbourne return services a day," Mr Sharp said.

"By Easter, two additional 737s will be added to expand our domestic network to Brisbane and other capital cities."

"If all things go as planned, we hope to grow our fleet to 8-10 by the end of 2021," he said.

[Ragnor]

"We will be offering premium full service with our trademark country hospitality but at fares pegged at the budget carrier level," Rex deputy chairman John Sharp said.

One or the other Sharpie can't do both, unless big mac has more funding for you!. I hope Rex have updated their lounges also, these high paying customers will want more than instant coffee and a packet of smith crisp in the lounge.

[wheels_down]

Proving flight underway. Taxi out to Bravo and just returned to gate. Flight plan has them heading to Melbourne and back but who knows where CASA will take them.

[Double_Clutch]

Maybe forgot to get the brown paper bag of Mac $$$$....

[patty50]

They’ve been doing proving flights for weeks with VH-VUF. A lot of time to iron out any kinks. Hilarious reading all the naysayers above.

[KRviator]

....who knows where CASA will take them.I don't think it can be said in polite company...

I wish REX well. Competition is always good, and if it gets some laid-off 737 driver's back in the air, even better.

[wheels_down]

They’ve been doing proving flights for weeks with VH-VUF. A lot of time to iron out any kinks. Hilarious reading all the naysayers above.
I understand as above today is the actual CASA proving flight. Still 3 months until operational kickoff. I recall Tiger did it’s proving flight the afternoon before operational startup. Bit more wriggle room here.

[Ragnor]

I see the Jet on bay 35 in Sydney a lot is this the allocated bay for Rex Jet or do they automatically get Tigers old bays?

[Turnleft080]

I remember when Compass II started up their were TAA/Ansett flight crew combinations in the MD88 flight decks.
May well be the Rex 73s will have a combo of Qantas/Virgin crew in the deck. That will make some interesting conversation.

[ANstar]

Seems like a Jetblue style offering which I think will work. Will likely pull more pax from VA than QF.

[MickG0105]

Well, from a quick scan of fare availability on the Rex website they haven't exactly shot the lights out on day one of their sale. Plenty of $79 fares (actually $85 if you want to be able to pick your seat) still available on a variety of flights on 1 March and onwards. Bearing in mind that Jetstar sold something like 70,000-80,000 fares in six hours when they launched their big sale back in June Rex's 100,000 discount fares 'launch' appears to be somewhat ambling in comparison.

To whoever was wondering why Qantas and Virgin weren't reacting, this is why.

[blubak]

I don't think it can be said in polite company...

I wish REX well. Competition is always good, and if it gets some laid-off 737 driver's back in the air, even better.
Couldnt agree more,jobs for anyone who now has 1 & didnt a few months back is good news.
Many may not like how Rex cried poor but dont think the people running the opposition care for anyone except themselves & their personal bank balance.

[Ladloy]

Couldnt agree more,jobs for anyone who now has 1 & didnt a few months back is good news.
Many may not like how Rex cried poor but dont think the people running the opposition care for anyone except themselves & their personal bank balance.
Can't you criticise the company but also be happy for extra jobs?

[Oriana]

"We’re a Qantas with a Jetstar price," Mr Sharp said

Except, Rex have no prior experience running a HICAP Jet operation.

I'd say that is an important omission.

[Brakerider]

I think the fact that their own staff doubt the viability of the jet operation says it all. It seems quite concerning the SAAB operation has essentially been forgotten.

[getaway]

Well, from a quick scan of fare availability on the Rex website they haven't exactly shot the lights out on day one of their sale. Plenty of $79 fares (actually $85 if you want to be able to pick your seat) still available on a variety of flights on 1 March and onwards. Bearing in mind that Jetstar sold something like 70,000-80,000 fares in six hours when they launched their big sale back in June Rex's 100,000 discount fares 'launch' appears to be somewhat ambling in comparison.

To whoever was wondering why Qantas and Virgin weren't reacting, this is why.
maybe Rex put a lot of cheap seats out there ? Apart from Rex & travel agents, who have access to their inventory, no one knows exactly how many seats at $79. Am sure Rex won't be broadcasting their sales numbers.

Maybe Rex has sold ****loads & decided, rather than match Virgins $99 sale price today, to put a few 1000 more $79 out there.

If you are flying Rex, doesn't matter what other airlines do later.

[Wingspar]

Can anyone with first hand knowledge of the Rex Saab operation give some insight on where the fleet sits. In terms of age, reliability, suitable capacity in the markets they serve? I would have thought that it is a very old fleet that needs updating? Perhaps that is where Rex should be paying attention to?

[PoppaJo]

Can anyone with first hand knowledge of the Rex Saab operation give some insight on where the fleet sits. In terms of age, reliability, suitable capacity in the markets they serve? I would have thought that it is a very old fleet that needs updating? Perhaps that is where Rex should be paying attention to?
https://asianaviation.com/atr-and-rex-sign-mou-on-fleet-modernisation/

[Wingspar]

Gee, even with a MOU they certainly seem to have the cheque book out.

Good luck to them.

👍 Thanks Pop!

[TimmyTee]

*the Australian tax payer’s cheque book on speed dial via MM

[-41]

”we have no debt”,
$150mil loan Facility with PAG ( not debt? )
$ 6-10 leases on 73’s.

[Servo]

Any info on how the proving flight went? Break down on the flight, did it "divert" or any other inflight requirements from CASA?

[Chris2303]

maybe Rex put a lot of cheap seats out there ? Apart from Rex & travel agents, who have access to their inventory,

Travel agents cannot tell how many seats there are in each booking class, or fare bucket. They can see that there are 7 or 9 seats available but they cannot see that (for instance) there were 30 seats in X class. Not all airline staff can see this information either.

[Ladloy]

Can anyone with first hand knowledge of the Rex Saab operation give some insight on where the fleet sits. In terms of age, reliability, suitable capacity in the markets they serve? I would have thought that it is a very old fleet that needs updating? Perhaps that is where Rex should be paying attention to?
​​​​​​Fleet is old but reliable, cost next to nothing to run with no real viable replacement. ATRs mentioned as a replacement soon but that will come with its own troubles including reduced schedules to smaller destinations.

[Section28- BE]

Any info on how the proving flight went? Break down on the flight, did it "divert" or any other inflight requirements from CASA?

'Servo'-

Weeell- 'according' to 'these' Dudes...... Link here: https://flightaware.com/live/flight/VHVUF/history/20201202/0000Z/YSSY/YMML

'It', was 'down and back'- all be it 57mins late 'Off-Blocks' at the get-go, understandable one would have thought- given, the Task at Hand/and the Compliance/Assessment ramifications......????

"One" may/or may-not also, assume????, Nil Rubber-Jungle deployment (unless simulated)- via the profile...????? and Nil Diversions....???? again, via the profile...????

But also, nil 'Sharpie'- 'this, IS how YOU run a Charter-Boat !!!!!' action- which, probably (like yourself) may have been anticipated/expected....???? or NOT??

Nar, got Nothing- time shall reveal....???

rgds all/
be well
S28- BE

[MickG0105]

maybe Rex put a lot of cheap seats out there ? Apart from Rex & travel agents, who have access to their inventory, no one knows exactly how many seats at $79.
Actually there's no maybe to it. Rex made a statement to the ASX stating that they were selling 100,000 promotional $79 fares. Both ASX rules and the Corporations Act have pretty clear rules relating to the veracity of such statements.

Am sure Rex won't be broadcasting their sales numbers.

Funny how Qantas and Virgin demonstrate no such reluctance when it comes to talking up how quickly their sale fares sell out. If Rex had made even a half decent fist of selling their promotional fares we'd be reading about it. The fact that their $79 fares are still currently available every day bar three or four in March and right across the Easter long weekend says that they are not exactly shooting the lights out on sales.


Maybe Rex has sold ****loads & decided, rather than match Virgins $99 sale price today, to put a few 1000 more $79 out there.

And maybe they didn't. I know what I think is more likely.

[getaway]

Actually there's no maybe to it. Rex made a statement to the ASX stating that they were selling 100,000 promotional $79 fares. Both ASX rules and the Corporations Act have pretty clear rules relating to the veracity of such statements.

TO CLARIFY
Know one except Rex & travel agents know how many $79 seats on every flight. Suspect very few during peak hour flightsMon-Fri.

>>>

Funny how Qantas and Virgin demonstrate no such reluctance when it comes to talking up how quickly their sale fares sell out. If Rex had made even a half decent fist of selling their promotional fares we'd be reading about it. The fact that their $79 fares are still currently available every day bar three or four in March and right across the Easter long weekend says that they are not exactly shooting the lights out on sales.

>>>
Who knows ? Maybe they want to keep the public buying them ? Conventional wisdom is dangerous, in this new world.

>>>

that's easy to say & impossible for anyone to disprove
>>>

And maybe they didn't. I know what I think is more likely.

Who knows. Rex had to get sales fares out there before other airlines grabbed their passengers.

[MickG0105]

TO CLARIFY
Know one ...
Yes, a few actually.


Who knows ? Maybe they want to keep the public buying them ?
Ah, yes, of course. The best way to get people to buy something is to announce that there's none of it left. They're a cunning bunch those marketeers, aren't they?

Conventional wisdom is dangerous, in this new world.

I don't know about being dangerous but, conventional or otherwise, it's manifestly in short supply in some quarters.

[wheels_down]

Virgin is playing the game now. Jetstar have followed cutting another $25 bucks of it. The Roo is not playing.

Clever move also sending out an email to its
10 million members reminding them to book a flight by March to maintain Silver to Platinum status. Cheap way to maintain their status and stay within the Virgin fort.


https://cimg7.ibsrv.net/gimg/pprune.org-vbulletin/640x480/88f2ad59_a7b9_4c5b_84bb_cbf6fdfafe0d_bd9463b49e368abbf97972a 8c7644057d17f5982.jpeg

[Ragnor]

can they keep up tho! I think not, time will tell.

“Rex have got the benefit of a regional market to feed into the domestic routes, and as long as they can stick to schedule with only six aircraft, they should do OK.”

[wheels_down]

can they keep up tho! I think not, time will tell.

“Rex have got the benefit of a regional market to feed into the domestic routes, and as long as they can stick to schedule with only six aircraft, they should do OK.”
I think they are over playing the feeding off regional bit. They won’t be filling half or even a quarter of jet flights with pax coming off the Saab’s. Saab seat capacity is a drop on the ocean compared to a jet operation. We are not talking Q400s here.

They might get some better connecting numbers when they launch the ATR.

[Ladloy]

I think they are over playing the feeding off regional bit. They won’t be filling half or even a quarter of jet flights with pax coming off the Saab’s. Saab seat capacity is a drop on the ocean compared to a jet operation. We are not talking Q400s here.

They might get some better connecting numbers when they launch the ATR.
Well they refuse to increase services with full pax loads on the saabs so it's definitely being over played currently

[Paragraph377]

REX are once again having a big sook about new routes announced by QantasLink, they include Mount Gambier, Wagga Wagga, Merimbula, Newcastle, Griffith, and Albury. They have called for the Federal Government to intervene, describing the announcement as an "attack on its profitable regional operations". Always crying, always wanting it their way.

You run an airline, an airline is a business, a business has competition. Stop your moaning.

[Ladloy]

REX are once again having a big sook about new routes announced by QantasLink, they include Mount Gambier, Wagga Wagga, Merimbula, Newcastle, Griffith, and Albury. They have called for the Federal Government to intervene, describing the announcement as an "attack on its profitable regional operations". Always crying, always wanting it their way.

You run an airline, an airline is a business, a business has competition. Stop your moaning.
I'm hearing some dodgy stuff coming from people who work there. Lots of schedule and pax manipulation to ensure they keep all the government assistance into the new year.

[Australopithecus]

I think Rex is about to learn a hard lesson that should have been digested in both Airlines 101 and Public Relations 202 and Governmental Relations and Media Relations. On that latter score Qantas pays more for media relations people than Rex does for a 737 lease. And they can give away memberships to one of the most exclusive clubs in the country. Rex? Not so much. The fix is in regarding competition, and largesse, and QF has the house advantage.

Everybody loves a story about a plucky band of insurgents upsetting the established order and bringing to the masses value, freedom and choice. We also wish the tooth fairy would pay for that implant we need, but alas....

[Ragnor]

Rex is also about to learn another lesson, with hard borders imminent and the stand down of crews domestic network thrown into chaos. Can Rex afford the open then shut borders between NSW and VIC for the next few yrs

[Guptar]

I think many of you spend too much time thinking about how many punters make their travel choice. Most simply have no idea what airlines are called and who they are, and they don't care. They simply look up a website, look who has a the most reasonable fare at roughly the time they wanted and that they can pay the fare without too much hassle. The equipment or service they offer simply doesn't feature on their radar. I've been in the industry for 30 years and I can't remember who I travelled on 2 years ago. I get on, read my newspaper and get off.

[Australopithecus]

That’s the point, Guptar. The majors can sell seats at a loss a lot longer than Rex can. And can refuse to interline baggage. And can tie them up by employing an army of angels to subtly shape opinions on social media. The majors can also manipulate travel agents (admittedly a smaller force these days) They can do many other tricks, large and small, to make Rex become a distant fourth choice when the punters choose an airline.

The rationale for Jetstar was to block any new LCC carrier from establishing itself at the cheap end of the market. Guess how merciless Qantas and Bain will be in the mid-market segment?

Rex is already bleating about Qantas deploying Dash-8s on their previously monopoly routes. That is just the first salvo in a needless market share war that Rex declared.

As has been previously mentioned, their fixed costs are starting to be locked in yet the virus may prevent any meaningful revenue offset for quite a few months yet, You cannot help the timing of that, but it has been a known odds-on possibility for about a year now.

Finally...a small fleet is its own risk: Look what happened to Tiger's reputation when their small fleet prevented service recovery after wx and mx disruptions. People are indeed price sensitive, but they are also smart enough to know when a $10 savings can cost them a day of vacation somewhere. Or to miss that wedding or other significant event.

Anyway...I have been in the industry a lot longer than thirty years, and I am aware that the ratio of failed airlines to remaining ones is probably approaching 50:1. It’s a mug's game.

[lucille]

Anyway...I have been in the industry a lot longer than thirty years, and I am aware that the ratio of failed airlines to remaining ones is probably approaching 50:1. It’s a mug's game.


100% correct but if we didn’t have dreamers and people willing to roll the dice and give it a go, we’d end up having an Aeroflot or worse, an Air Koryo of the South Pacific........ oh wait.

This is why I feel the need to support new starters until they prove themselves unworthy.

[Kickstarter]

Just had an email from Jetstar re a sale.

Looked at 1 March SYD/MEL/SYD & Jetstar are doing $49 each way & nonstop 13 flights in each direction.

Not sure how many SYD/MEL/SYD nonstops in each direction, JQ used to do, but must have been around 5 or 6 last time I looked.

[Derfred]

It's been a while since I've seen a new starter try to do it "better".

They all just seem to want to do it "cheaper".

I think we've scraped enough out of that barrel.

[TBM-Legend]

That’s the point, Guptar. The majors can sell seats at a loss a lot longer than Rex can. And can refuse to interline baggage. And can tie them up by employing an army of angels to subtly shape opinions on social media. The majors can also manipulate travel agents (admittedly a smaller force these days) They can do many other tricks, large and small, to make Rex become a distant fourth choice when the punters choose an airline.

The rationale for Jetstar was to block any new LCC carrier from establishing itself at the cheap end of the market. Guess how merciless Qantas and Bain will be in the mid-market segment?

Rex is already bleating about Qantas deploying Dash-8s on their previously monopoly routes. That is just the first salvo in a needless market share war that Rex declared.

As has been previously mentioned, their fixed costs are starting to be locked in yet the virus may prevent any meaningful revenue offset for quite a few months yet, You cannot help the timing of that, but it has been a known odds-on possibility for about a year now.

Finally...a small fleet is its own risk: Look what happened to Tiger's reputation when their small fleet prevented service recovery after wx and mx disruptions. People are indeed price sensitive, but they are also smart enough to know when a $10 savings can cost them a day of vacation somewhere. Or to miss that wedding or other significant event.

Anyway...I have been in the industry a lot longer than thirty years, and I am aware that the ratio of failed airlines to remaining ones is probably approaching 50:1. It’s a mug's game.


People need to 'Get Real' as the airline business is commercial warfare and the Marquis of Queensbury Rules don't apply!

[ANstar]

Just had an email from Jetstar re a sale.

Looked at 1 March SYD/MEL/SYD & Jetstar are doing $49 each way & nonstop 13 flights in each direction.

Not sure how many SYD/MEL/SYD nonstops in each direction, JQ used to do, but must have been around 5 or 6 last time I looked.

Pre Covid I believe Jetstar were flying every hour between the 2.

[Kickstarter]

Pre Covid I believe Jetstar were flying every hour between the 2.not so sure, but maybe 1/2 of them went to AVV not MEL ???????

[brokenagain]

Another day, another BNEA320 alias. Why??? :rolleyes:

[DanV2]

Just had an email from Jetstar re a sale.

Looked at 1 March SYD/MEL/SYD & Jetstar are doing $49 each way & nonstop 13 flights in each direction.

Not sure how many SYD/MEL/SYD nonstops in each direction, JQ used to do, but must have been around 5 or 6 last time I looked.

Did your most recent alias get banned again, BNEA320?

[blubak]

Just had an email from Jetstar re a sale.

Looked at 1 March SYD/MEL/SYD & Jetstar are doing $49 each way & nonstop 13 flights in each direction.

Not sure how many SYD/MEL/SYD nonstops in each direction, JQ used to do, but must have been around 5 or 6 last time I looked.
New marketing idea from Jetstar,Syd-Mel nonstop,genius in the making🤭

[Seaeagle109]

The Daily Telegraph is running this story.

Probably a bit of a beat up but you never know.

https://www.dailytelegraph.com.au/news/nsw/rex-airlines-rex-is-seeking-to-employ-overseas-pilots-to-fly-domestic-routes/news-story/319b859264163c9916a71cfd60429646

[Ragnor]

Can only see the headline. I wouldn’t expect anything else from this mob and the gov will let them do it as they let them get away with everything else. I hope LKH has access to deep pockets he will need it what’s happening in SY now will happen again Maybe NSW or it maybe be VIC next time.

[Ladloy]

Does someone have a subscription who can post the story?

[Chris2303]

Rex Airlines seeking to employ overseas pilots to fly domestic routesRex Airlines is seeking to employ non-Australian pilots to fly domestic routes despite many local pilots not having jobs thanks to the pandemic.
John Rolfe (https://www.dailytelegraph.com.au/journalists/john-rolfe)

Regional airline REX will suspend three routes as part of a 45 per cent reduction in capacity. The company was tipped to reduce services by 25 per cent after…


Rapidly expanding airline Regional Express could *recruit foreign pilots for its new routes from Sydney to Melbourne and Brisbane despite 40 per cent of local captains and first officers still being out of work.

The Singapore-controlled airline is currently seeking dozens of pilots to fly the six 737s it is adding to its fleet.

Using a labour agreement the Department of Home *Affairs granted before the rise of coronavirus and fall of *Virgin Australia, Rex is able to recruit from overseas using “Temporary Skills Shortage” visas — the new name for 457s.

While it has yet to employ any pilots on TSS visas, it won’t rule out doing so.
https://multitools.newscdn.com.au/multitools/slider/content/1609231131102/Airline-2020_HAik60w8Gg.jpg“Rex has no foreign pilots recruited for its current operations,” a spokesman told The Daily Telegraph on Tuesday.

Rex shares have soared by 300 per cent since March — to their highest level since 2007 — as investors back its bid to become a fully-fledged domestic airline.

Meanwhile, the Australian Federation of Air Pilots is calling for a ban on bringing in foreigners. In a new submission to a Senate inquiry into the future of local aviation after COVID-19, the union says “the federal government should ensure that Australian citizens and residents are provided the priority to re-enter Australian employment opportunities and that operators should not be able to bring in temporary foreign labour”.
https://content.api.news/v3/images/bin/39c4499be51cde2a237e6cd3d6c3827d REX is looking for foreign pilots to fly domestic routes. Picture: NCA NewsWire / Jeremy PiperFederation president Louise Pole told The Daily Telegraph that a recent survey it conducted among 1000 members found 40 per cent had been forced to find work outside the industry — hopefully only temporarily. Rex deputy chairman John Sharp, a transport minister in the Howard government, de*fended the airline’s need for “flexibility”.

Rex had invested $45-50 million in two training facilities only to have graduates “pilfered” by larger carriers, he said.

In 2008 Rex lost half of its pilots in three months to Qantas, Virgin and Emirates, he added. “If anyone gets any kudos for giving Australians a chance in this industry, it’s Rex,” he said.

Qantas and Virgin hadn’t trained any pilots.
https://content.api.news/v3/images/bin/a3f25309c24e4a68621e2806dd309555 Rex Deputy Chairman and former federal transport minister John Sharp. Picture: AAP Image/Mick TsikasThere had been times when Rex faced not having a captain for scheduled sectors, which meant it had to combine flights.

“It is still necessary for us to access pilots from overseas in times of shortage,” Mr Sharp said.

The labour agreement also covers engineers and *instructors.

Mr Sharp said foreign workers made up less than 10 per cent of Rex’s 1150-strong workforce, which was set to grow by 400. “We are adding people rather than making them redundant” like other airlines, he said.

[Ragnor]

I’m guessing the theory behind this is, they will employ them on different contract paying them same as a SAAB skipper. That can be the only rational to this. Big daddy McCormack will give Sharpie the nod to this.

[TimmyTee]

So REX whinge about pilots being stolen, talk up their academies..... and then exclusively hire external 737 pilots.
Right

[Ragnor]

They wont have anywhere to fly their 737 in March anyway, the way its going from today's news no one will open to NSW anytime soon.

[PoppaJo]

Well there goes Jan. First half of Feb looking risky. Going to be tight. These two Labor premiers will be holding them by the balls for as long as possible.

[Kickstarter]

So REX whinge about pilots being stolen, talk up their academies..... and then exclusively hire external 737 pilots.
Right
exclusively ? It's just a wake up call.

It's obvious to all what's going on.

Major glut of pilots. Those who want work will have to work for less.

There's going to be fireworks on SYD/MEL come March or end of Feb when business types start booking their March business trips.

It's all about costs & airlines have to keep them low or go belly up. Qantas isn't immune now that new Virgin has much lower costs.

Going to get interesting in about 60 days time.

[getaway]

New marketing idea from Jetstar,Syd-Mel nonstop,genius in the making🤭
so now jetstar competes with qantas. Dumb as