Rex and Virgin to hook up??

[apacau]

I hear from a number of places that Rex and Virgin aren't far off some sort of deal (codeshare).

Would start on SYD-CBR and maybe expand elsewhere later.

[HOBAY 3]

REX flies x7 daily CB-SY, and x4 daily CB-ML services. DJs SY flights leave only half an hour later than REX in the morning, and at the same time in the evening. DJs ML services leave only 20 mins earlier in the morning and 10 mins earlier in the evening. REX could expand the CB-SY service, and leave the CB-ML service for DJ, as it is more suited to jet, where as CB-SY more suited to turboprop. The other shared route is Coffs Harbour. With an alliance, DJ may consider a weekly ML-Coffs service?

:hmm: :hmm: :hmm:

[apacau]

Just a small correction Hobay - Rex only fly ML-CB 2x a day (with additional flights on Mon and Fri).

I think Virgin will keep their jet services on CB-SY. If a partnership happens, Rex will probably alter their schedules providing more off peak services. Rex's peak flights are already quite full on the route. If all Virgin pax were to be added to this, a 737 almost becomes necessary (at least in the medium term).

With ML the same could occur. Two current jet flights at peak time (meaning Virgin would have to leave CBR earlier each morning) with Rex doing a couple of off-peak services.

[ER2nd.]

sort of sounds like they an intermediate sized (jet) aircraft. I've got a good(?) idea ....... how about some of them there CRJ's....! (I''ll now go and hide from all the 'incoming'....)

[HOBAY 3]

As of May 1, DJ is dropping a daily HBA-MEL flight and starting a x4 per week MEL-MCY service on Mon,Thu,Sat,Sun. This aircraft would be free at this time on Tue,Wed,Fri. Why not utilise this aircraft on the Friday for a MEL-CFS service?

:hmm:

[Wirraway]

Mon "The Australian"

Rex fails to crack Canberra
By Steve Creedy
April 28, 2003

CALL it fortress Canberra.

Regional airline carrier Rex is having trouble breaking into the nation's capital, despite slashing airfares as it tries to entice federal bureaucrats on to its planes.

It has forced the airline to start talking tough. Rex has warned it may pull out of the nation's capital if it fails to get more government custom, leaving the game to Qantas.

Rex has dramatically cut its fares between Canberra, Melbourne and Sydney to significantly undercut Qantas in an attempt to try to snare some Canberra business.

But government departments and their flying habits are proving difficult to budge.

"If we don't see an uplift in the next couple of months, we would have to seriously consider pulling off the Canberra route completely," said Rex chief executive Michael Jones.

Mr Jones said a failure to take advantage of the Rex fares would cost taxpayers an additional $6 million a year.

He estimated a 10 per cent market share of government travel on Melbourne-Canberra and Sydney-Canberra would net Rex about $15 million, compared to the roughly $210 million he estimated Qantas received.

He said the dominance in federal Government travel of the Qantas corporate business arm, Qantas Business Travel, left Rex fighting an uphill battle.

Rex's Capital Shuttle provides about 11 per cent of the seats in and out of Canberra but only accounts for 0.5 per cent of government travel.

Mr Jones said this was despite requirements that travellers take the best fare. He said Rex consistently kept its fares up to 7 per cent below those of Qantas with a schedule of 11 return services a day.

The airline's $139 one-way Canberra-Sydney full economy fare and its $159 Canberra-Melbourne counterpart were now "a big chunk" lower than Qantas equivalents, even if corporate rebates were taken into account. He did not have a problem competing with the bigger airline and believed Rex's on-time performance and inflight service outclassed the Qantas equivalent.

"Where I have a problem is, who is keeping QBT honest?" he said.

Virgin Blue, which does not yet fly to Canberra but plans to start services in June, voiced similar concerns about its estimated 1 per cent share of government travel.

Virgin Blue head of commercial David Huttner likened the QBT-Qantas position to Microsoft advising the Government on which software to buy.

"It's Virgin Blue's firm belief, and we have brought this to both the ACCC's and the Government's attention, that QBT is clearly compromised and should be banned from any further tendering for government business," Mr Huttner said.

A spokesman for Transport Minister John Anderson said Mr Anderson had urged departments to consider Rex when flying. He said some departments were locked into other airline deals, mainly with Qantas, but he had not heard of any problems with QBT.

"But we've been as proactive as we can in trying to get people to hopefully use Rex as much as they possibly can," he said. "We've got to be careful because we can't favour them above others, but we think they should be considered for all the right reasons."

[HOBAY 3]

Correction, that aircraft is used on ML-CG on those other days, so no opportunity for the ML-CH anyway!

:O :sad: