Rex Withdraws From Cfs

[HAMO]

See that Regional Express has withdrawn from CFS effective from this weekend

Is this a sign of things to come where Rex competes against QF/DJ - is CBR-SYD/MEL next on the chopping block

[wot_tha]

No I think removing the CBR-SYD / MEL run is furtherest from their mind.

The removal of the Coffs run is just some sensible route restructuring, after assessing the market over the first 6 months of REX's operations. This can only be good news...if a route don't pay, don't go there.....means a continued pay check for the staff.

Many of REX's routes are now either profitable or getting closer to it and those that aren't have load factors on the increase. Although the Coffs run has been pulled, the aircraft are being utilised to increase capacity to other more profitable ports. That's sensible management in my opinion.

And incidently for those that are into predicting the end of the world, and said REX would not make it through the first 6 months.....well Sept to March is how many months ??? They are now knocking at the door of network wide profitability and with it a very bright future. Fly high you good thing.........

[Master of the House]

While on the REX subject, good luck to all those who have REX interviews next week!

[apacau]

On the subject of profitability, does anyone know which routes are and aren't profitable?

[slice]

Master - are these guys with interviews those laid off from KD / Hazo or a new bunch?:}

[Master of the House]

First new bunch i think, although some might be ex ansett, most are from GA i think.

[Eastwest Loco]

apacau

DPO and BWT would be at best marginal and so I think would be MQL.

KNS and he internal SA runs should be profitsble particularly Kangaroo Island and OLP. SYD CBR shoukld also be performin well despite the saturation capacity from QF/DJ.

Still some sorting out to be done, but Rex seems destined to succeed.

Damn good thing too.

Best all

EWL

[frank Borman]

Dr Phil, quite a few REX flights from SYD to CBR and return are in the double digits. You are neglecting the early am and arvo flights onto TGN often have over 25, the rest vary from 11's to high teens with a few less than that. Don't know what pax sheets you look at, but CBR does ok given the hassle REX have had with lack of Government support. The other routes that do well are WGA and ABX out of SYD, oh and your forgetting the SA network. The SA network does better than the combined old ZL neywork. Crews in MEL have been saying things are picking up as well. Remember REX is coming out of the quiet time. And remember that two weeks ago REX bookings broke new records over 4, yes 4 days.

Your comments are true at the end of your post. Thats the reason SQ will be utilising REX.

[apacau]

Rex pax loads out of CBR are OK but not flash.

I have flown Rex to from CBR a few times in the last little while and I keep a record on number of pax. Though it's not an excellent indication, they were as follows:

3 dec 02 CB-ML 13 pax
8 feb 03 CB-SY 17 pax
9 feb 03 SY-CB 11 pax
13 feb 03 CB-ML 17 pax
28 feb 03 CB-SY 17 pax

[frank Borman]

Uhum, Apacau, Kendell Administration loads, 1's, 5's, sometimes a 9, or a double figure digit.

Nowdays, up and running, loads consistently in the teens, based on an average of 12 to break even. I don't think things are as bad as you doomsdayers beleive.

Thanks for flying REX though, they need the support, hope you continue with them.

[Eastwest Loco]

Worrying sign today was release of all Rex seats on all flights DPO and BWT MEL at $111.00 a seat including taxes and levies.

This is for sale to the end of April and is for all flights right to November.

I hope I am wrong, but am getting flashbacks of the Impulse cheapies that seemed to appear around the time a GST payment was due just before Gerry did a wheels up.

The end revenue certainly would not even come close to covering DOCs with the $70.00 odd that is left in the fare after everyone else has their nibble.

When Kendell kept running after AN was gone, the funds for future travel were held in trust until the revenue was flown.

Does anyone know if this is he case with Rex? I certainly hope so because this promo has caused more consternation in the Travel Industry than anyone would believe.

Best all

EWL

[giddy up]

Atleast its not as bad as when some of the CRJ's were doing CBR runs out of SY with 1 pax on board. :eek:

They must have felt like royalty;

2 pilots
2 flighties
3 ground crew

[Eastwest Loco]

I can see the marketing logic of getting people back on the aeroplanes, but look what happened to CFS.

The Saab does suffer a little against the Dash down here but they generally seem to be a more reliable aeroplane and i am 6'4" and 140kg - still find them a solid and comfy aeroplane.

What they need badly is a network for oncarriage, and until DJ embrace a global Distribution System (apparently they are trying to but cant get the software to handle the mix of GST liable and non liable taxes) Rex remains semi snookered.

Hopefully DJ will take the next big step, but somehow from the Travel press I cannot see it happening.

Maybe Alliance can start to fill the gap.

Let's pull the F27s and F28s of the hard stands and go for it guys.

Best all.

EWL

[frank Borman]

Apacau, was based on what was being used as benchmark for that route and TGN. Be carefull promulgating REX doing bad on this board. the halfwits that fly for the white arrogant rat get their paws on it and use it in the press. Why not, they report every other airlines problems to the press instead of their own!!

Take care.

[wot_tha]

For all you doomsdayers a wake up call........REX IS HERE TO STAY....Better get used to it cause they are going to be in your face for a long time to come. Where there is a rat flying there will be a REX....and furthermore guess what....they WILL be profitable and sooner than you think. Furthermore it's a great place to work. They have (genuinely) friendly and helpful staff because they enjoy their jobs. They will win over the passengers from those disgruntled in another airline because of this. If you must bag them it is probably because deep down you really believe REX IS HERE TO STAY

Now I have that off my chest......

Eastwest

The Tassie routes are being sold cheap to in an attempt to increase REX's exposure on the routes, not as a continued bargain basement fare to undercut QF. The same was contemplated for Coffs but the decision was made to drop the route instead. Don't expect to see the Tassie runs at this price forever, but REX needs to get some more exposure in the market in some areas. Just mention Regional Express to a lot of passengers and they say "who" ? Then say "Kendell"and they all go "oh Kendell....ok" REX have a very smart marketing team and that shows in some of their inivative ideas such as the latest backpacker fares.

REX's management in my experience seem to be a lot more switched on then the old AN management of the past. They are there to make money and seem to be taking on board old Don's philosophy of "if it don't pay, we don't go". Of course at the moment especially from travel agents perspective etc you would see many teething problems however these are progressively being ironed out.

I think what we all forget is REX is in effect a new company, the administration period in my opinion doesn't count. They have only been around for 6 months and have exceeded many of their own expectations. I think they have a very bright future, despite the predictions of those who like to predict end of world events.

As for oncarriage Eastwest, I think just watch this space, it is closer than you think... Frequent flyer program online within weeks.......There is much in the pipeline....When these all happen watch the loads start to soar.

Thanks as always Eastwest and others for your support of REX and also your concern, however I am convinced they are here to stay this time round ...... Don and Max made it work, so why can't AWA........The staff of REX would never wish to be in administration again and are as equally determined as the management to see it work

[Eastwest Loco]

Wot_Tha

Fully agree that the ex KD/now ZL staff are much more switched on and were certainly so in the past.

The first gut reaction was not good to the Industry, and I have had a chat with my Rep from rex, and can see the logic. It may still be a loss situation in the short/medium term bat a smaller loss than expected. That IS positive and logical.

I have been doing the rounds of my haunts (ie: pubs and RSL club etc:O :O ) and telling the footy patrons to get off their butts and book NOW with good response.

Rex may be a new company, but the core that made Kendell a jewel in he crown is still there, God bless 'em and if it can be done, they are the best team. Hazo's were no slouch either and that shines through still.

New initiatives released today with Easter fares over most routes adds to the exposure, and the free advertising gained on Tas TV station news programs with the $111 fares is the best advertising around - and it is free.

Sorry to be initially negative, but even though my agency has survived OK, the stress level have been enough to light Wodonga for a week.

Go Rex!!! I look forward to a real airline emerging from other parts of regional Australia and riding the razors edge again. I will have my hand up for ground handling here in a second!

Best

EWL

[HAMO]

WOT THA

You continually refer to "DON" in your post

Can I remind you (and a lot of other people out there), that Rex isnt just ex Kendell

Remember the name "Max" - as in HAZELTON

Both Max and Don were great people, and had great airlines, and great people working for them.

Dont forget that!!!!!!!

[Eastwest Loco]

One little trick that is often overlooked that can make the difference between an enquiry and and a sale is - if they are obviously from overseas - Ie: backpackers - visibly foreign - speak with an accent etc. ask if they have an inbound international air ticket.

If they do, then the AB (Ansett Bailout) and UO (GST component) can be removed from their ticket leaving still the same return for the Airline and seller of the ticket.

It is a great way to ingraciate yourself to the client and give the Airline a better image. So easy and so ignored by those that play at travel.

interestingly unless you go thru a major rigmarole, one cant do this with DJ and there is no online web facility that will allow it.

Maybe there is still uses for us yet.:D :D

EWL

[apacau]

Frank

my apologies. That "post" was intended to be an email for you alone. No idea how/why it ended up posted here (I clicked the wrong button?).

I have deleted the post, knowing that I will be more careful in the future.

[wot_tha]

Hamo

Sorry, no offence intended and I apologise for my oversight about Max. Just I'm more familiar with the KD side of things. Have amended my last post to reflect this.

[HAMO]

WOT THA

Apppreciate your response. With more people like yourself who accept that it was 2 great airlines that got together and gave birth to Rex, that is how the new baby will grow and prosper.

Good luck to you all

[wot_tha]

I agree yet again whole heartedly Hamo. I think it is time all parties now cease any us and them between the old ZL and KD and that we are embrace the now ZL, Regional Express, a combined new and inovative company with some really great people and ideas. We have much to learn from each other and this is showing through in many areas already. We all hate change but it is necessary to ensure our survival. Both companies have good and bad and we now have the opportunity to harness the best of both of them. I personally think it is an exciting place to be at the moment and if you can get a gig on the latest recruitment drive, I think you will really enjoy the experience.

[Master of the House]

REX is doing well, better then most people think. Load factor last friday was 62% over the whole network. In the same week REX had record internet and phone bookings, looks good for the future!

[questil]

Well I just got in as of monday and cant wait, Always been my dream to fly for Kendell now REX bring it on Ill be there for keeps and will help make it prosper as Im sure it will.

[Captain Slug]

Questil,

Just curious as to when you had the interviews and what was the process. Have they given you a basing yet and what fleet type? good luck anyways.

[Eastwest Loco]

Some interesting input today from inside sources.

It appears that the $111.00 fare is attracting a significant subsidy from the Port of Burnie Authority and possibly even the Burnie Council.

It is certainly getting help in part employing the North West sales rep and providing office space and secretarial services, and hey - if they were offered, who would not take them??

The theory is (and it is working) that DPO and even LST SLF will wend their way to Wynyard to take advantage of the fare, which must have a subsidy from either or both Authorities. The call centre base in Burnie is something else that would make the incumbent authorities keen to subsidise.

There is not one little thing wrong with this practise, except that it is not transparent, and it is not accesible to QFlink who have seamlessly served the port through the Ansett collapse.

i believe they have recieved similar concession for opening their HBA call centre, but shouldnt all this be more transparent?

best all

EWL

[howard hughes]

All this talk about load factors, what about YIELD?

[wot_tha]

Always the way...out of the woodwork yet again, another knocker.

[Eastwest Loco]

True howie - there is no way, unless massively subsidised on the quiet that an $111.00 fare (around $75.00 nett) can pay the bills on BWT and DPO MEL.

Yield isnt the question, it is the answer.

EWL

[Balanced Moment]

It's true that yield has greater importance than load factor but neither can be looked at in isolation. They're both important - particularly in competitive markets.

EWL,

In an ideal world there would be transparency in everything we do but unfortunately that's not the case. Do your competitors know everthing about the way you do business? I think not and the reason is obvious - you like to maintain your competitive advantage ... otherwise why the hell would you do it.

Understanding that then, why should there be transparency in the deals that REX may or may not have done with local or state governments in Tasmania or elsewhere? The question of inappropriate spending of taxes? You're an experienced gent - if indeed there is a subsidy do you honestly think it is being spent inappropriately? What is the alternative? REX pulls out of the Tasmanian market (or worst still dies entirely) and leaves everything to QLink. What's in the best public interest?

You surprise me - particularly for a gent as experienced and worldy as yourself?

BM

[Eastwest Loco]

Not grizzling at all balanced.

After having seen the inept operations of the Burnie council in the past, I am just waiting for this to cost the Burnie ratepayer a mozza.

They bought a Jetset franchise several years ago ($25,000 then - free now)and went into business against their rate paying Travel Agents - as they employed ex Tasbureau staff who are about as useful as external genitalia on a ballerina, it crashed and burned.

I wish Rex no ill will at all, in fact I look to them becoming part of a much bigger operation. God know, we need it.

Best regards

EWL