REX Welcomes Qantaslink to South Australia
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REX Welcomes Qantaslink to South Australia
Rex Welcomes Qantaslink to South Australia
31 October 2005
South Australia’s largest regional airline and Australia’s largest independent regional airline, Regional Express (Rex) has welcomed Qantas’s decision to bring Qantaslink to South Australia following the cessation of services by Airlines of South Australia and Emu Airways.
“Rex has always believed in the benefits competition brings to airline services and the commencement of services to Port Lincoln and Kingscote by Qantaslink will fill the gap left by ASA’s and Emu’s withdrawal,” Rex’s Managing Director Geoff Breust said.
“For this reason Rex also brings its services to Qantaslink monopoly ports whenever the conditions are right. Exactly one year ago we responded to the invitation of the Armidale
City Council in New South Wales and today we see that airfares there are about 30% below what they used to be. We are continually besieged by other councils, both in New South Wales and Queensland to replicate this successful model and we have promised them to review their requests after our float.”
On Friday, October 28, Rex closed its Initial Public Offer for 35 million new shares at $1 each and is expected to be quoted on the ASX on Wednesday, November 9. Initial estimates are that the offer is approximately two times oversubscribed.
“Rex has been the airline that has brought affordable fares to regional air travel. Our average fare today across our entire network of 33 routes is 20% lower than what it was when we started three years ago. This is after we have factored in a $22 fuel surcharge. We pass back to regional travellers the huge gains we have made in our productivity drive.”
“The entry of Qantaslink into South Australia will not change our approach and we will continue our strategy of making regional air travel reliable and affordable. We aim to further grow our markets by building on the successes we have been able to achieve over the past three years.”
Regional Express operates a fleet of 29 aircraft on 33 routes across south eastern Australia from Adelaide, Sydney and Melbourne. It has a major operational and engineering base at Adelaide Airport, operates more than 1,100 flights weekly and is forecasting to carry in excess of 1.1 million passengers this financial year.
Mr Breust said that he believes the closure of Airlines of South Australia and Emu Airways and the commencement of Qantaslink in South Australia would not materially affect the IPO, nor the overall performance of the Company.
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Certainly the REX staff in South Australia have enormous sympathy to those employees affected by the closure of ASA and Emu operations, many REX employees here having suffered the same uncertainty four years ago with the Ansett collapse.
Hopefully those flight crew in SA affected will be given first priority for interviews at REX. Ensure that your details are up to date on staff.cv!
Rex has obviously worried Qantas to the point that they see it necessary to bring the fight to South Australia. REX has more than shown Qantaslink in other states that we are a force to be reckoned with. This is the beginning of yet another exciting chapter in REX's history. Go REX!
Unlike Qantaslink, flight crew training is done entirely in house at REX and NO UPFRONT ENDORESMENTS are required before you start.
To all those employees at Emu and ASA, we hope that this disruption is just a minor hiccup and that we have the pleasure of working with you or seeing you in employment elsewhere in the very near future.
31 October 2005
South Australia’s largest regional airline and Australia’s largest independent regional airline, Regional Express (Rex) has welcomed Qantas’s decision to bring Qantaslink to South Australia following the cessation of services by Airlines of South Australia and Emu Airways.
“Rex has always believed in the benefits competition brings to airline services and the commencement of services to Port Lincoln and Kingscote by Qantaslink will fill the gap left by ASA’s and Emu’s withdrawal,” Rex’s Managing Director Geoff Breust said.
“For this reason Rex also brings its services to Qantaslink monopoly ports whenever the conditions are right. Exactly one year ago we responded to the invitation of the Armidale
City Council in New South Wales and today we see that airfares there are about 30% below what they used to be. We are continually besieged by other councils, both in New South Wales and Queensland to replicate this successful model and we have promised them to review their requests after our float.”
On Friday, October 28, Rex closed its Initial Public Offer for 35 million new shares at $1 each and is expected to be quoted on the ASX on Wednesday, November 9. Initial estimates are that the offer is approximately two times oversubscribed.
“Rex has been the airline that has brought affordable fares to regional air travel. Our average fare today across our entire network of 33 routes is 20% lower than what it was when we started three years ago. This is after we have factored in a $22 fuel surcharge. We pass back to regional travellers the huge gains we have made in our productivity drive.”
“The entry of Qantaslink into South Australia will not change our approach and we will continue our strategy of making regional air travel reliable and affordable. We aim to further grow our markets by building on the successes we have been able to achieve over the past three years.”
Regional Express operates a fleet of 29 aircraft on 33 routes across south eastern Australia from Adelaide, Sydney and Melbourne. It has a major operational and engineering base at Adelaide Airport, operates more than 1,100 flights weekly and is forecasting to carry in excess of 1.1 million passengers this financial year.
Mr Breust said that he believes the closure of Airlines of South Australia and Emu Airways and the commencement of Qantaslink in South Australia would not materially affect the IPO, nor the overall performance of the Company.
-----------------------------------------------------------------------------------
Certainly the REX staff in South Australia have enormous sympathy to those employees affected by the closure of ASA and Emu operations, many REX employees here having suffered the same uncertainty four years ago with the Ansett collapse.
Hopefully those flight crew in SA affected will be given first priority for interviews at REX. Ensure that your details are up to date on staff.cv!
Rex has obviously worried Qantas to the point that they see it necessary to bring the fight to South Australia. REX has more than shown Qantaslink in other states that we are a force to be reckoned with. This is the beginning of yet another exciting chapter in REX's history. Go REX!
Unlike Qantaslink, flight crew training is done entirely in house at REX and NO UPFRONT ENDORESMENTS are required before you start.
To all those employees at Emu and ASA, we hope that this disruption is just a minor hiccup and that we have the pleasure of working with you or seeing you in employment elsewhere in the very near future.
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If what the press release says is true and QANTAS were going to go in there in December with TL operating, what hope is there for all the other QF aligned regionals. If QF have no regard etc for a company like TL, what does fate hold for Mac-Air, O'conners etc.
QF dont want to see REX get up and I bet we will see QF on some Mac-Air and O'conner routes with in 6-12 months
QF dont want to see REX get up and I bet we will see QF on some Mac-Air and O'conner routes with in 6-12 months
Best of luck to any smaller carrier that has to compete with QFlink. Rex has shown some very good performance against this well funded opponent 
QF are risk adversive. Particularly since the company was "Siloed" so the numbers must really stack up for them to go into this market
QF are risk adversive. Particularly since the company was "Siloed" so the numbers must really stack up for them to go into this market
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Thanks shapeshifter.........
Thanks for the heads up.............. guess myself and the rest of the crew will "heads down, a$$ up, and just crack on with business for the next 7 days"...............
The SA Rann government has apparently 'ruled out' subsidies for a Port Augusta to Adelaide air service.
Nice one Mr Rann, great friends of transport your government has been.
Today from the Advertiser:
QANTAS will begin direct flights between Adelaide, Port Lincoln and Kangaroo Island next month.
Direct flights between Melbourne and Kangaroo Island will be introduced as well.
Business leaders in both centres yesterday welcomed the news - which coincided with an announcement by Airlines of South Australia and Emu Airways that they would stop operating next week.
The regional airlines, owned by Capiteq Limited, operate flights to Port Lincoln, Kangaroo Island and Port Augusta.
Their departure tomorrow week threatens the jobs of 53 employees, based mainly in Adelaide.
Capiteq chief executive Michael Bridge said the SA operation had been making significant losses for the past two years.
Qantas, through its regional airline QantasLink, will operate 58 services a week between Adelaide and Port Lincoln and daily return services between Adelaide and Kangaroo Island from December 18. It also plans to operate four services a week between Melbourne and KI.
Eyre Regional Development Board executive officer Mark Cant said the arrival of Qantaslink represented a great opportunity because it linked the town with Qantas holidays and every arm of its business. "A lot of companies here are global businesses and this has enormous benefits for business, tourism and freight," he said.
Kangaroo Island Tourism past chairman Chris Schumann, manager of the Ozone Seafront Hotel, said the entry of QantasLink was positive for the island which attracted many international visitors.
QantasLink will offer special fares from $59 one way to Port Lincoln and to Kangaroo Island from Adelaide for a limited time.
It is also offering a launch fare of $99 one way between Melbourne and Kangaroo Island.
Nice one Mr Rann, great friends of transport your government has been.
Today from the Advertiser:
QANTAS will begin direct flights between Adelaide, Port Lincoln and Kangaroo Island next month.
Direct flights between Melbourne and Kangaroo Island will be introduced as well.
Business leaders in both centres yesterday welcomed the news - which coincided with an announcement by Airlines of South Australia and Emu Airways that they would stop operating next week.
The regional airlines, owned by Capiteq Limited, operate flights to Port Lincoln, Kangaroo Island and Port Augusta.
Their departure tomorrow week threatens the jobs of 53 employees, based mainly in Adelaide.
Capiteq chief executive Michael Bridge said the SA operation had been making significant losses for the past two years.
Qantas, through its regional airline QantasLink, will operate 58 services a week between Adelaide and Port Lincoln and daily return services between Adelaide and Kangaroo Island from December 18. It also plans to operate four services a week between Melbourne and KI.
Eyre Regional Development Board executive officer Mark Cant said the arrival of Qantaslink represented a great opportunity because it linked the town with Qantas holidays and every arm of its business. "A lot of companies here are global businesses and this has enormous benefits for business, tourism and freight," he said.
Kangaroo Island Tourism past chairman Chris Schumann, manager of the Ozone Seafront Hotel, said the entry of QantasLink was positive for the island which attracted many international visitors.
QantasLink will offer special fares from $59 one way to Port Lincoln and to Kangaroo Island from Adelaide for a limited time.
It is also offering a launch fare of $99 one way between Melbourne and Kangaroo Island.
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Now there is talk of further expansion at Qantaslink next year, moving some of the -200s on the CB-NTL run when the -400s start arriving. Don't know what that means for the present QF-alinged operator.
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Ace on Base; My sympathies and best wishes to you and all others. We never met but I know of you.
(DR knows who I am)
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you're born. Once when
you've looked death in the face.
(DR knows who I am)
You only live twice. Once when
you're born. Once when
you've looked death in the face.
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Eyre Regional Development Board executive officer Mark Cant said the arrival of Qantaslink represented a great opportunity because it linked the town with Qantas holidays and every arm of its business. "A lot of companies here are global businesses and this has enormous benefits for business, tourism and freight," he said.
