next virgin blue ?

[DTS]

Well aware of Rex and this further confirms that there is no need for another airline, let alone a budget airline in Australia. Fiji Airways does well though......


26 FEBRUARY 2014 MEDIA RELEASE
AVIATION IN CRISIS

The Regional Express (Rex) Group today announced it s first half FY1314 results with a Profit Before Tax (PBT) of $5 million on a turnover
of $129.3 million.


Commenting on the results, Rex Chief Operating Officer Garry Filmer said that as foreshadowed in the profit guidance issued on 7 February 2014, the Group’s PBT for the period slumped 59.8% compared to the same period last year due to a continuing weak Australian economy.

[BNEA320]

no one is suggesting a budget airline but rather an airline with much lower costs that maybe only flies trunk routes at busy times . maybe a part time acmi operation that's a separate division of an existing airline. could be set up reasonably quickly as well.

[BNEA320]

no one is suggesting a budget airline but rather an airline with much lower costs that maybe only flies trunk routes at busy times . maybe a part time acmi operation that's a separate division of an existing airline. could be set up reason ably quickly as well

[43Inches]

I am still waiting for your previous prediction of VA to "go broke"

This would be true without;

Funnily enough the real pros SQ, EY, NZ see VA good enough to chuck significant amounts of cash in

SQ, EY, NZ

Are throwing money into VAH to keep it afloat to prevent facing a QF with a domestic monopoly and tie ups with EK.

One just has to look at the profits QF generated in the mid 2000s without significant opposition whilst VA was a very small player. Since that point QF has been pushing J* and Jetconnect into NZ airspace, J* into SQ held territories and the tie ups with EK threaten EY income from this end of the world.

If VAH is let go and does go broke, QF will return to massive profitability very quickly. This combined with tie ups with EK will be a huge problem for SQ and NZ in particular with no domestic feed from Australia. VAH going broke however is extremely unlikely until the shareholders start hitting a financial wall themselves which hardly seems likely.

no one is suggesting a budget airline but rather an airline with much lower costs that maybe only flies trunk routes at busy times .

In order to make money on any of the competitive routes in Australia you will need a certain mass flow and size of operation to keep overheads low. The trunk routes, most importantly the flow into Sydney is saturated at the peak times and slots are impossible. Outside of peak and you are not going to get the premium last few seats sold to make profit from a jet consistantly, 7 days a week, year round. You will also be facing fares from tiger and J* well below profitable unless you are running 50+ jets.

My understanding was that all RPT flights now required screening and that several regional ports had to spend considerable money to comply, even though their RPT service was only a twice weekly Metro or Dash 8.
Maybe there is room to move if the Minister gives his authority? Or maybe (and more likely ) the regulation is not fully enforced, particularly in regional areas?

Not required for aircraft under 20,000kg as previously stated, this is why Rex was in dispute with DBO council regarding paying for screening when it is not required for their operation. The Dash 8 Q400 is well above 20,000kg so attracts the screening requirment, this is why a lot of country ports adopted screening in places where QLink flies to attract the larger aircraft.

[BNEA320]

no one said using mascot .

you could also start with only a few aircraft like virgin did. rex could do it now with virtually no extra aircraft or overheads. might upset their big brother partner though . point is it could be done easily + cheaply

[43Inches]

you could also start with only a few aircraft like virgin did.

I think it's well known that VB would not have gone anywhere without the demise of Ansett and the subsequent void in the market. At present the market is saturated, hence why all players are losing money or very slim profits.

[Worrals in the wilds]

Not required for aircraft under 20,000kg as previously stated, this is why Rex was in dispute with DBO council regarding paying for screening when it is not required for their operation. The Dash 8 Q400 is well above 20,000kg so attracts the screening requirment, this is why a lot of country ports adopted screening in places where QLink flies to attract the larger aircraft.

Cheers, thanks for that. The regulation is not worded precisely.