Rex up, up and away!

[Zero_au]

I just heard from a little bird today that the part owners of REX (SIA), are in deep discussion with REX and Virgin management to start up a 2 class Aussie jet operation using REX's AOC and the yet unclaimed trans Pacific routes that were once reserved for Ansett. Apparently, this is why Virgin has not progressed very far with their OS plans, as this new deal will cost far less than Virgin going alone. Rex will introduce a new 50-110 seat jet, possibly using the stretched CRJ or A318/319. It is worth noting that the CRJ and A320 SIM's are still fully operational in Garden Drive. As the change in direction is so radical, this is the main reason for the recent departure of the CEO, from REX. The domestic flying will start innitiately, then with Virgin,s help, the OS ops will start with most probaly 737-800 or A320/321 :cool:

[Master of the House]

Well we all wish, but i don't think so. Just my opinion.

[pullock]

I have been expecting movement in that area for a while now. Watch that space.

Here's a thought,

They will have to drop the regional name, and I have a suggestion

Singapore EXpress

S E X

[karrank]

Hunched over like a cripple in the back of a CRJ all the way to LA, SEX would be no more possible than in the back of a Fiat 500...:ouch:

[Buster Hyman]

Giving CRJ's to KD was radical too, & we all know where that ended up!:rolleyes:

If they whinged about a CRJ to LST, imagine if it went over some serious water!:eek:

[scrotometer]

jones got the flick because he continued to ignore the wishes of the majority shareholders and he simply didn't perform.
his departure was not linked in any way to the future direction of the company as you've put forward.
jones spent too much money and ran the outfit poorly. that's all there was to it.:{ :{

[Rubber Chicken]

If this is the case then why are we (Virgin) currently undertaking ETOPS trial flights???

[cnsnz]

another rumour
Was talking to someone today who said there is another airline with links to an Asian Carrier also looking at trans tasman in comp to DJ and a merged NZ/QF

[No worries mate]

Lets look at the facts;

REX do not have an AOC that would allow jet operations or for that matter anything larger than the 36 seat aircraft. A new AOC would take 6+ months plus to obtain.

Although REX passenger numbers are increasing, there are still ports where they struggle and have reduced flights to some ports.

To operate the intenational flights REX would need ETOPS approval from CASA, which will take another 6+ months for that approval.

Virgin are just about to get their ETOPS approval, have the required AOC, have approval from countries within the Pacific to fly there and they have 10-20 new 737's arriving in the next 12 months. So which airline do you thing will operate internationally?

On the subject of the Ansett Sim centre, all the sims in the centre are fully operational and have been since Ansett collapsed. The B737 is used by ETA and Qantas, the 767 by Air Pacific and Qantas, the B146 by NJS, the Saab by REX and Air Nelson and the A320 only maintenace flights.

[Pete Conrad]

No worries mate - KD/REX had a high capacity AOC with which alot of the tools to rapidly re - implement are at hand if need to do so.

SIA are still more likely to come in behind Virgin and then use REX to feed a low cost domestic operation and a high yeild business operation of limited size which is why I still think in the next three years we will see two and a half airlines in Australia.

[Wirraway]

Fri "The Australian"

'Friction' forced out Rex boss
By Steve Creedy, Regional carriers
July 04, 2003

REGIONAL Express founder and former chief executive Michael Jones has blamed friction with shareholders for last Friday's shock resignation from the carrier.

Mr Jones said yesterday that constant pressure to meet shareholder demands, mostly from those with minority stakes, prompted his decision to resign.

"I'm still a significant shareholder in the company, so I still want the company to obviously go onwards and upwards," he said.

"But suffice it to say I got sick and tired of having to address 40 per cent of my week in relation to shareholding issues and shareholders rather than running the airline."

Mr Jones, who retains just under 10 per cent of the airline, said his departure was not a sign that Rex was in trouble.

He remained committed to the company, had offered his assistance in an advisory capacity and still believed it would be a roaring success.

"I felt very comfortable that I'd now got the company to a break-even stage and it's in really good shape, so that is part of the timing for it," he said. Rex, a meld of former Ansett subsidiaries Hazelton and Kendell Airlines, has battled to re-establish itself in the regional market across four states.

It is a third owned by a Singaporean consortium and a third by Canberra-based shareholders, with the remainder split between management and small investors.

Mr Jones and two other outgoing directors, John Hindmarsh and Darren Dougan, have been replaced by Leong Lee, Lim Kim Hai and Lee Thian Soo.

Spokesman Peter Leate said discussions were under way with other potential directors and a search for a new chief executive would canvass both internal and external candidates.

He said the existing management team, including chief operating officer Neil Shea, was reporting directly to the board while the search was under way.

Asked whether the Singaporeans were now effectively running the company, Mr Leate said they had resumed positions on the board.

"It's business as usual for the airline, its 600 staff and the passengers," he said. "And the shareholders remain committed to supporting the airline to make sure it reaches its full potential."

Mr Leate said the airline did not plan any route changes but that Canberra, where the airline was struggling to win government business, remained under review.

He said Rex was looking at opportunities for new services and was fine-tuning its aircraft mix on different routes.

It had brokered a deal in Parkes to drop the airport head tax, a move which would save $40 on a return ticket when combined with the end of the Ansett levy, and was discussing similar deals with other local governments.

"We're continuing to get on with building our regional markets and making sure they're sustainable in the future," he said.

But Mr Jones predicted the new board would find that running an airline was more complex than they thought.

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