Rex Expanding Into Jets
This news was known by insiders about 1 month ago. I posted the following on another thread on 15 April. Todays announcement has added PER and BNE. I understood PER and BNE was to be Phase 2 of the expansion.
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REX is not 100% foreign owned. In fact the top 20 shareholders only own 86.8% of the company. You would be surprised at who owns small holdings in REX. REX is up 23% today on the ASX.
REX know the SF340 is too small for the larger markets in the ADL-MEL-CBR-SYD incl Tasmania golden triangle. They are looking at larger aircraft again. This makes 3 airlines who are interested in commencing an operation cherry picking routes. Watch this space when the wheels fall off VA.
REX know the SF340 is too small for the larger markets in the ADL-MEL-CBR-SYD incl Tasmania golden triangle. They are looking at larger aircraft again. This makes 3 airlines who are interested in commencing an operation cherry picking routes. Watch this space when the wheels fall off VA.
Krismiler, there is no such thing as a ‘regional’ jet.
Ansett managements push to introduce the CRJ at Kendell was a sorry example of this misconception. That they attempted it with such a top heavy management structure meant that they were doomed from the beginning. The issues there were nothing to do with anything that is part of CASA‘s role and everything to do with a lack of understanding of the operation AN took over.
A jet is a jet, and it will always have different operating economics to a turboprop. If you really think “Regional jets might be a better starting point” on routes like MEL-BNE and SYD-PER then I’m not sure you understand the economics of airlines.
Ansett managements push to introduce the CRJ at Kendell was a sorry example of this misconception. That they attempted it with such a top heavy management structure meant that they were doomed from the beginning. The issues there were nothing to do with anything that is part of CASA‘s role and everything to do with a lack of understanding of the operation AN took over.
A jet is a jet, and it will always have different operating economics to a turboprop. If you really think “Regional jets might be a better starting point” on routes like MEL-BNE and SYD-PER then I’m not sure you understand the economics of airlines.
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I think you might find some nearby (read: East) Pacific neighbours with surplus A320CEO, A320NEO and A321NEO fleets parked up all over NZ...
With a recently almost $1bill government loan... And a desire to reenter the Australian market.
There has already been a lot of talk from the NZ unions about subsidiaries (and highlighting associated contractual protections in place), discussing potential Australian domestic operations, and the CEO's stance that he is prepared to take advantage of absolutely any gap in the Australasian market.
With a recently almost $1bill government loan... And a desire to reenter the Australian market.
There has already been a lot of talk from the NZ unions about subsidiaries (and highlighting associated contractual protections in place), discussing potential Australian domestic operations, and the CEO's stance that he is prepared to take advantage of absolutely any gap in the Australasian market.
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Well Sharp and chairman Hai played the government for fools didn’t they. Qantas had to borrow against assets, VA went into admin.....Rex with their connections got the government to subsidise them, well played. Let’s see how well they can play CASA to get a high capacity jet AOC up and running. I’m sure as long as they run a jet between Wagga and Canberra they will be in business.
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QUOTE
Mr Sharp said Rex was confident of being able to fly in and out of Sydney because it was the third-largest holder of slots at Sydney Airport. “We will bring a much lower cost base to the capital city routes,” he said.
So if they give some of those slots of SYD to new jet operation, where will some of the saabs go ? Bankstown ?
Mr Sharp said Rex was confident of being able to fly in and out of Sydney because it was the third-largest holder of slots at Sydney Airport. “We will bring a much lower cost base to the capital city routes,” he said.
So if they give some of those slots of SYD to new jet operation, where will some of the saabs go ? Bankstown ?
QUOTE
Mr Sharp said Rex was confident of being able to fly in and out of Sydney because it was the third-largest holder of slots at Sydney Airport. “We will bring a much lower cost base to the capital city routes,” he said.
So if they give some of those slots of SYD to new jet operation, where will some of the saabs go ? Bankstown ?
Mr Sharp said Rex was confident of being able to fly in and out of Sydney because it was the third-largest holder of slots at Sydney Airport. “We will bring a much lower cost base to the capital city routes,” he said.
So if they give some of those slots of SYD to new jet operation, where will some of the saabs go ? Bankstown ?
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IF VA2 doesn't happen there'll be a ****load of SY slots the airport will gladly allocate to anyone to get the $$ rolling.
Like an unused seat on a flight an unused slot is an asset wasted and lost.
Like an unused seat on a flight an unused slot is an asset wasted and lost.
This would be ideal for CASA to get their teeth into!
Instead of working to resolve their issues with Glenn Buckley, they really can say we are too busy with a high capacity AOC application to worry about Glenn.
Instead of working to resolve their issues with Glenn Buckley, they really can say we are too busy with a high capacity AOC application to worry about Glenn.
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Could Rex be considering the Ejet E170/190 over the 737/A320? The Ejet E170 would certainly be a good replacement for their ageing SF340 fleet with plenty of first generation Ejets now available cheaply. The E190 has the legs to do PER-MEL and Air North uses the E170 to do Toowoomba - MEL so BNE -MEL is no problem.
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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.
deputy chairman John Sharp is ex transport minister in howard govt. He knows the ins & outs of Canberra. Probably done the rounds already. CASA won't be an issue,
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