Australia, New Zealand & the Pacific Airline and RPT Rumours & News in Australia, enZed and the Pacific

Rex Expanding Into Jets

Old 15th May 2020, 11:48
  #161 (permalink)  
 
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Originally Posted by Lookleft
For a perfect example of financial stupidity then look no further than ANZ buying 50 % when they were told they couldn’t afford it.
​​​​​​... and paying 36 percent more than what SQ had offered
​​​​​​... and funding the bulk of the purchase price by borrowing.
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Old 15th May 2020, 11:51
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Originally Posted by MickG0105
​​​​​​... and paying 36 percent more than what SQ had offered
​​​​​​... and funding the bulk of the purchase price by borrowing.
Okay Boomer. So this is a Rex thread.

Feel free to find one of the thousand other Ansett threads to post on. Otherwise keep it on topic, Boomer.
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Old 15th May 2020, 12:07
  #163 (permalink)  
 
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Master caution, overuse of the ‘boomer’ word. Cue kids looking at you like you are a dag
And a quick rewind reveals who took us to all things Kiwi ay bro

Last edited by ozbiggles; 15th May 2020 at 12:52.
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Old 15th May 2020, 12:54
  #164 (permalink)  
 
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Originally Posted by InZed
Okay Boomer. So this is a Rex thread.

Feel free to find one of the thousand other Ansett threads to post on. Otherwise keep it on topic, Boomer.
Says you having raised Ansett in the first place!

Originally Posted by InZed
Ansett was a sinking ship before NZ got involved.

Last edited by MickG0105; 15th May 2020 at 13:01. Reason: Manners
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Old 15th May 2020, 13:05
  #165 (permalink)  
 
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Please take your meds.
I thiink he's been taking someone else's!
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Old 15th May 2020, 20:43
  #166 (permalink)  
 
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They have cut costs and are almost making money already. I think they’re well placed to enter the AU market.
What....wait...they didn’t make too many people redundant too quickly did they?
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Old 15th May 2020, 21:20
  #167 (permalink)  
 
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Originally Posted by InZed
NZ has the money or loan ability to invest into Rex
What money - it is broke!
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Old 16th May 2020, 07:09
  #168 (permalink)  
 
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Originally Posted by Green.Dot
How is the E170 a good replacement for a SAAB340? You won’t get it into half the strips the SAAB goes. It burns heaps more fuel and is in a totally different class re pax loads.

Its almost like trying to compare an A380 to a B737.

One thing Rex currently do well is break even off a route with minimal pax because they own their aircraft and the SAAB is very fuel efficient.

And they are mostly subsidised
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Old 16th May 2020, 08:52
  #169 (permalink)  
 
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Originally Posted by Chris2303
What money - it is broke!
I think/know they’re fine. They’re also just about to role out a new business class product.

https://www.stuff.co.nz/business/ind...-covid19-chaos

They’re priming themselves time be ready for a competition at the end of this. And they’re clearly trying to attract business travellers with money.
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Old 16th May 2020, 08:59
  #170 (permalink)  
 
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52% government owned with another 900 million about to become equity and making hundreds/ thousands redundant? The only airline getting anywhere near that much government support in this neck of the woods is Rex....just to stray back onto topic.
I’m sure Jacinda and Winston can’t wait for AirNZ to expand overseas.

Using your logic why doesn’t Qantas and or Rex decide to fly in NZ as well? Well financed and lots of aircraft and crews......expand Jetstar Nz by a factor of 4 plus maybe?

Last edited by ozbiggles; 16th May 2020 at 09:11.
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Old 16th May 2020, 10:02
  #171 (permalink)  
 
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Originally Posted by ozbiggles
Using your logic why doesn’t Qantas and or Rex decide to fly in NZ as well? Well financed and lots of aircraft and crews......expand Jetstar Nz by a factor of 4 plus maybe?
You missed a crucial difference here mate. Qantas-backed Jetstar NZ could do what they wanted with 70 jets. They could fly a dozen daily services if they wanted... but there’s f-all domestic demand in NZ (population of under 5mill and all).

Financial Year (ending 2019):
- Australian domestic = 61.040 million passengers
- New Zealand domestic = 4.618 million passengers

The Australian market is almost FORTEEN times the size of NZ’s, and thus, can handle more than two main airlines.

I think REX has a very good shot at picking up some of that market, whomever is financially backing them.
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Old 16th May 2020, 11:13
  #172 (permalink)  
 
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I think Australia keeps proving it has trouble with two main airlines let alone adding Tiger v3 Bought to us by Rex and Ansett v3 or is it 4? bought to us by AirNZ.
Don’t hurt your head on that wall
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Old 16th May 2020, 20:27
  #173 (permalink)  
 
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Originally Posted by InZed
I think/know they’re fine. They’re also just about to role out a new business class product.

https://www.stuff.co.nz/business/ind...-covid19-chaos

They’re priming themselves time be ready for a competition at the end of this. And they’re clearly trying to attract business travellers with money.
The money was probably 90% spent with just installation to go. As the article says it makes sense to do the configuration change whilst the airplanes are (more or less) grounded
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Old 16th May 2020, 20:30
  #174 (permalink)  
 
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Originally Posted by ozbiggles
52% government owned with another 900 million about to become equity and making hundreds/ thousands redundant? The only airline getting anywhere near that much government support in this neck of the woods is Rex....just to stray back onto topic.
I’m sure Jacinda and Winston can’t wait for AirNZ to expand overseas.

Using your logic why doesn’t Qantas and or Rex decide to fly in NZ as well? Well financed and lots of aircraft and crews......expand Jetstar Nz by a factor of 4 plus maybe?
Qantas tried, remember? They failed. Jetstar tried. They have partially failed after cancelling the Q300 flights and cutting back the A320 schedule late last year.

If NZ spend that money to fly Australia domestic there will be such a hue and cry to the extent that you have never seen before
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Old 17th May 2020, 00:33
  #175 (permalink)  
 
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Originally Posted by Chris2303
Qantas tried, remember? They failed. Jetstar tried. They have partially failed after cancelling the Q300 flights and cutting back the A320 schedule late last year.

If NZ spend that money to fly Australia domestic there will be such a hue and cry to the extent that you have never seen before
The Q300 operation was nothing more than a shot across the bow of ANZ for bankrolling VA at the time. More than coincidental that once once QF and NZ become friends again, the Q300s were withdrawn from NZs most lucrative regional routes

Remember when GK left left Nelson to head up Jetstar NZ and oversee the Q300 introduction?
Air NZ none too pleased and ultimately lost thier restraint of trade case against him in the employment court. I dont think anyone believed the the Jetstar Q300s were to be introduced as any sort of money making venture.
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Old 22nd May 2020, 00:00
  #176 (permalink)  
 
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Rex pinged by ASX for epic disclosure fail

Rex pinged by ASX for epic disclosure fail

Australian Financial Review - 22 May 2020 - 12:00am
Joe Aston

Country turbo-prop operator Regional Express Holdings announced in this publication on May 12 that it was pivoting to flying jets between capital cities. This assuredly material information was disclosed by Rex’s deputy chairman (and former federal Transport Minister) John Sharp in a freewheeling interview with Chanticleer columnist Tony Boyd. Problem is, Rex never thought to first alert its shareholders to this momentous news via the Australian Securities Exchange platform.

Just three minutes after the market opened at 10am last Tuesday, the ASX paused trading on Rex stock. 78 minutes later, the company requested (and was granted) a trading halt.

The following day, Rex issued a “response” to its own comments in this newspaper suggesting it was merely “considering the feasibility of commencing domestic [jet] airline operations”.

Just “considering” its feasibility? Hardly!

“We plan to lease a fleet of about 10 aircraft and hire new pilots, cabin crew and ground staff”, Sharp had told Boyd. “We are doing this because we see an opportunity”.

They’re doing this.

The May 13 response clearly didn’t satisfy the ASX (nor should it have), which fired off a “please explain” letter on May 18, whose tone one might characterise as incredulous.

Rex’s response to that – lodged late on Wednesday afternoon – was hardly any better. “In this particular instance Rex believed that information about possible city operations was not sufficiently definitive to constitute material information”.

Not sufficiently definitive?! Sharp had identified the cost ($200 million), the method of fundraising (“through the sale of new shares in Rex”), the number of planes (10), their routes (“The plan is to start flying between Sydney, Melbourne, Brisbane, Adelaide and Perth”), the timeline (“early next year”) and the number of interested parties (“we have been talking to half a dozen private equity and investment banking entities… and will narrow that down to one in the next three weeks or so”). Oh, and Rex has already discussed amending its flying license with the Commonwealth’s air safety regulator. Any more definitive and Rex would be selling tickets already!

The whole sequence lays out a stupendous failure of elementary public company compliance by the airline’s leadership, which is sharp in name only. Little wonder their propellers fall off.

Throw in Transport Minister Michael McCormack’s dismal performance throughout Virgin Australia’s COVID-19 collapse and be astonished by an entire, critical sector of the economy distorted by the tiny minds of the National Party.
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Old 22nd May 2020, 01:31
  #177 (permalink)  
 
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Looks like REX are 'all hat no cattle' when it comes to getting jets. They've received a 'please explain' from the ASX over disclosing market sensitive information to a newspaper......

REX ASX Announcement

Dear SirAt the outset, we would like to assure ASX that Rex takes its continuous disclosure and other ASX obligations seriously and we have always tried to comply with our obligations.In response to your letter of 18 May 2020, we would like to provide the following information.On28April2020, Rex was approached unsolicited by the Australian Financial Reviewseeking an interview with Rex's Chairman to discuss Rex's success in regional aviation, as well as general aviation issues. The interview took place on 5May2020. During the course of that interview the journalist began to also ask about the domestic aviation sector and the Virgin situation. The AFR article was published on7May2020 and is reproduced in the Appendix.The article generated widespread interest in aviation circles and Rex was contacted by several parties wanting to discuss the future of domestic operations. In a follow-up interview by the same journalist from the AFR with the Deputy Chairman,John Sharp on 11May2020, thequestion was asked as to whether Rex was interested in taking any initiatives with regards to the VA situation. John replied that Rex had some confidential exploratory discussions with some parties about Rex’s possible interest in starting domestic operations. John said that Rex’sposition was that Rex felt that expanding its operations to cover domestic services could make commercial sense if there was a party willing to adequately fund the project. This resulted in the article being published in the AFR on 12 May2020.The Sydney Morning Herald article of 13 May2020was probably written on the back of the AFR article but Rex had nothing to do with that article.Rex has always tried to ensure that any material informationis disclosed to the ASX prior to the release to the general public. In this particular instance Rex believed that information about possible city operations was not sufficiently definitive to constitute material informationWe also took this view as we did not expect that information to have a material effect on our share price. In the almost 15 years since Rex has been listed on the ASX, we have observed that nothing much excites the stock market concerning Rex besides news of exceptional dividends or profits. Rex has made many announcements of contracts worth several hundreds of millions with barely a ripple on the share price. Another example is how the newspapers recently carried reports of Rex receiving an outright grant of over $50 Million from the Commonwealth and the share price did not even move. Given this background, we didn't expect our share price to move as it did.Given how the share price reacted to the news, it is evident that our judgement call was erroneous. We wish to reassure ASX that Rex will err on the side of caution in the future.While Rex believes its continuous disclosure program and training has been adequate, it will seek to make further improvements. In particular, we will be engaging our lawyers to conduct further training on Continuous Disclosure to the Board and Management Committee at the next Board meeting to ensurethat our obligations are clearly understood and complied with.We appreciate ASX raising this matter with us. We confirm that these responses have been authorised and approved by our Chairman and Deputy Chairman who have authority to respond to ASX on disclosure matters
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Old 22nd May 2020, 04:40
  #178 (permalink)  
 
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What 'Parra' said-

"Ando/Sharpie" (inter-changeable...., pick one), shall be all over 'it'/& shall fix......... IT!!!!

Bit like 'Angus' (Cayman's...) or the Ag Minister at this time............, Not the Constituency- that, 'they' give one flying Fcuk About!!!!

'They' talk days of Yore- but, have never been/and done- any of 'It'.

Have a good weekend
Rgds all
S28- BE

Last edited by Section28- BE; 22nd May 2020 at 09:25. Reason: Waited to see- how it rolled......
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Old 22nd May 2020, 04:53
  #179 (permalink)  
 
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I wonder how much bragging the chairman is doing now given he doesn't even seem to be able to have his upper management and company follow basic rules of being a listed company. He should be completely embarrassed by this. If that sort of specific information is not sufficiently definitive then I'm not sure anyone knows what is.
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Old 22nd May 2020, 23:48
  #180 (permalink)  
 
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I,m not sure I understand what is going on here, does that mean that the possibility of REX getting into jets is all a load of cobblers and it was never a serious proposal ??
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