Rex Expanding Into Jets
https://www.pprune.org/archive/index.php/t-22042.html
Perhaps you need to review a bit history on this whole sorry saga.
https://www.pprune.org/archive/index.php/t-22042.html
https://www.pprune.org/archive/index.php/t-22042.html
The very simple story is that ANZ bought what they couldn't afford, paid too much (36 percent more than what SQ had offered which in of itself should have rung alarm bells) and borrowed heavily to fund the purchase. Moreover, they had no plan for how they were going to integrate the two businesses and no CEO to drive the process. For the critical six months after the purchase the whole show was being run by Sir Selwyn Cushing, a mate of Ron Brierley's with zero airline experience. In centralising Treasury and Finance to Auckland ANZ moved cash out of AN while ladling in the liabilities associated with the borrowings undertaken to fund the purchase.
The rest is all fairly well known.
Last edited by MickG0105; 23rd May 2020 at 02:32. Reason: Tidy up
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I’m sure ASIC will accept that Mr Anderson “got his words muddled up”.
I know a lot of us aren’t flying a the moment, but if you have a second imagine something.
Imagine those long, grinding years in GA, hoping to get into a legacy carrier, the flogging about in piston twins without radars in the muck, dreaming about the flight levels.
Imagine landing that airline gig. Set. For. Life. Like winning the lotto, but over 10 years. Replacing the ****box car, buying a house, starting the family. And what a life it is.
Imagine getting into that left seat after your time and really appreciating it all, the extra money with the responsibility and finally getting to run your own show and your own ship. Those early morning walk arounds you don’t have to do anymore, the approaches to almost minima, where you feel you heart skip a few beats because you get home after 17 hours instead of diverting. Imagine the feeling of cruising through the crew only lane with the liqueur that the wife loves, knowing you’ll be home within the hour.
Imagine, getting your Commercial license over 40 years ago. Imagine the changes, NDB homing, through to LNAV/VNAV approaches. Imagine the incredulity on the faces of the new SOs when you tell them that the IRS could be off by more than 10 miles after crossing the Pacific. Imagine the silent glee when you think back to how wild the Pacific could be on a night filled with storms and how nice it is to be in your bed in a country that isn’t your own but accepted you.
Imagine the overwhelmingly amazing career, with the downside of it being a terribly fatiguing vocation. But you get to spend your retirement catching up on sleep, maybe even chase the grass roots of the industry that you once fell in love with.
Imagine having millions of dollars worth of assets and settling in a country that you haven’t lived in for decades.
Then imagine coming onto an online forum and goading thousands of stood down and unemployed pilots. Imagine how sad an unfulfilling your retirement must be if you have to spend hours a day on a low tier message board reminding everyone you used to fly in the left hand seat
Just imagine.
j3
Imagine those long, grinding years in GA, hoping to get into a legacy carrier, the flogging about in piston twins without radars in the muck, dreaming about the flight levels.
Imagine landing that airline gig. Set. For. Life. Like winning the lotto, but over 10 years. Replacing the ****box car, buying a house, starting the family. And what a life it is.
Imagine getting into that left seat after your time and really appreciating it all, the extra money with the responsibility and finally getting to run your own show and your own ship. Those early morning walk arounds you don’t have to do anymore, the approaches to almost minima, where you feel you heart skip a few beats because you get home after 17 hours instead of diverting. Imagine the feeling of cruising through the crew only lane with the liqueur that the wife loves, knowing you’ll be home within the hour.
Imagine, getting your Commercial license over 40 years ago. Imagine the changes, NDB homing, through to LNAV/VNAV approaches. Imagine the incredulity on the faces of the new SOs when you tell them that the IRS could be off by more than 10 miles after crossing the Pacific. Imagine the silent glee when you think back to how wild the Pacific could be on a night filled with storms and how nice it is to be in your bed in a country that isn’t your own but accepted you.
Imagine the overwhelmingly amazing career, with the downside of it being a terribly fatiguing vocation. But you get to spend your retirement catching up on sleep, maybe even chase the grass roots of the industry that you once fell in love with.
Imagine having millions of dollars worth of assets and settling in a country that you haven’t lived in for decades.
Then imagine coming onto an online forum and goading thousands of stood down and unemployed pilots. Imagine how sad an unfulfilling your retirement must be if you have to spend hours a day on a low tier message board reminding everyone you used to fly in the left hand seat
Just imagine.
j3
Last edited by j3pipercub; 24th May 2020 at 13:52.
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Deputy PM saved Rex from bankruptcy Australian Financial Review - 24 May 2020 - 11:09
GeZuss 'H' Strewth 'Berealgetreal'- 
Mate- do you have the appropriate PPE (Tin-Foil Hard-hat and Lead jocks.... etc.), to be loading 'that' stuff here......????
Extract here:
There are, 'apparently' people whom 'Wish'/& Aspire to be in the Flight Levels with their hair on fire at +6.8 NM/min, at the end of this- and have the Hopes/'Wishes' and Prayers (plus 'some' Sharpie Action) from ScoMo.........., allegedly very helpful 'these' things are/be............!!!!!!
So, should your entrails not be smeared over faces, whilst 'they' chant over your shredded corpse- block-up 'Mate', bomby 'they' do get!!!!!!
Just can't do that!!!!- Apparently......!!!!!
But, yeah 'I' would- 'hearin' you!!!!
Could 'someone' merge this 'one': Just for awareness/educational purposes- or not, as is your call/privilege.
Rgds all/be well
S28- BE
Mate- do you have the appropriate PPE (Tin-Foil Hard-hat and Lead jocks.... etc.), to be loading 'that' stuff here......????
Extract here:
Most galling of all are Rex’s grand (and expensive) growth plans just four weeks after a $67 million taxpayer freebie saved it from bankruptcy.
So, should your entrails not be smeared over faces, whilst 'they' chant over your shredded corpse- block-up 'Mate', bomby 'they' do get!!!!!!
Just can't do that!!!!- Apparently......!!!!!
But, yeah 'I' would- 'hearin' you!!!!
Could 'someone' merge this 'one': Just for awareness/educational purposes- or not, as is your call/privilege.
Rgds all/be well
S28- BE
Last edited by Section28- BE; 25th May 2020 at 12:02. Reason: Typo- berealget'r'eal.....
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Deputy PM saved Rex from bankruptcy Australian Financial Review - 24 May 2020 - 11:09
'Berealgetreal'- Oh righteo gotya, mate......
Did not mean to suggest that, the article was not a Valid and Relevant chronology piece (published/& in the public domain) of the last 90-120 days- ex a news outlet of some substance.
AFR Link: https://www.afr.com/rear-window/deputy-pm-saved-rex-from-bankruptcy-20200524-p54vxa
Extract here:
All cool/rgds
S28- BE
Did not mean to suggest that, the article was not a Valid and Relevant chronology piece (published/& in the public domain) of the last 90-120 days- ex a news outlet of some substance.
AFR Link: https://www.afr.com/rear-window/deputy-pm-saved-rex-from-bankruptcy-20200524-p54vxa
Extract here:
-Rear Window
Deputy PM saved Rex from bankruptcy
Joe Aston Columnist
May 24, 2020 – 11.09pm
Last week on Squawk Box Asia, Regional Express Holdings chairman Lim Kim Hai tried justifying his recent dance moves on Virgin Australia’s grave in light of Rex’s own precarious standing up until its rescue by the federal government.
By way of refresher, Lim had lambasted Virgin’s “extremely lax and extremely non-courageous” management and its “dysfunctional” board of directors back on May 7, adding that Rex was “probably the most qualified party in Australia to be able to run an airline like Virgin”. No flies on him.
A week later, Rex’s deputy chairman, John Sharp, announced to this newspaper the planned launch of Rex flights between Australian capital cities using 10 new jet aircraft, failing to first inform its own shareholders via the Australian Securities Exchange platform. The new foray, Sharp revealed, will necessitate the issue of $200 million of new Rex shares, a mere 172 per cent of its current $116 million market capitalisation!
CNBC anchor Sri Jegarajah was rightly incredulous. “Mr Lim, with all due respect, you’re calling into question how Virgin Australia was run but Rex was facing bankruptcy in March. How would you characterise your financial health right now and what’s changed since then?”
What’s changed since then is that Rex has been given $67.6 million by Sharp's National Party comrade, Deputy Prime Minister Michael McCormack, a full $53.8 million of that in untied grants, and more than Qantas and Virgin received in Commonwealth relief funding combined. That’s a handout worth 21.3 per cent of Rex’s annual revenues, so the equivalent of giving – not loaning – Virgin $1.2 billion and Qantas $3.8 billion.
Adding insult to injury, McCormack (who is also the Transport Minister and Nationals leader) said on April 2 that “Virgin will also be able to benefit from the $298m package that we put down the other day: $198m for subsidising the 138 routes flown to and from regional centres”. Which was completely false. Virgin did not qualify for a cent of this money.
That same day, McCormack said: “We can’t just pick and select individuals and winners out of this" – words he will be force-fed for the rest of his pitiful career.
Just like Virgin, foreign-owned Rex was going broke. “Even Rex cannot survive the next six months of this global emergency,” its chief operating officer, Neville Howell, pleaded. Even Lim confirmed to CNBC that Rex is only surviving “at least the next six months … thanks to the grant from the government”.
We can’t just pick and select individuals and winners out of this.— Deputy Prime Miinster Michael McCormack
So McCormack told Virgin to find “a market-led solution” but gifted Rex all the cash it needed. Sharp, who just so happens to also be a longstanding National Party official, exalted McCormack’s “meaningful assistance package” designed to “prevent [Rex] from collapsing”. The audacity of the cronyism almost eclipses the cronyism itself.
When Prime Minister Scott Morrison reckoned on April 14, vis-à-vis the aviation sector, that “we haven’t been picking any winners or picking any favourites here”, he cannot have been properly briefed on his deputy’s staggering conduct.
Most galling of all are Rex’s grand (and expensive) growth plans just four weeks after a $67 million taxpayer freebie saved it from bankruptcy. Right now, Rex may be the only airline on earth in expansion mode. The Deputy Prime Muppet emits a resounding silence. Is this what not picking winners looks like?
Deputy PM saved Rex from bankruptcy
Joe Aston Columnist
May 24, 2020 – 11.09pm
Last week on Squawk Box Asia, Regional Express Holdings chairman Lim Kim Hai tried justifying his recent dance moves on Virgin Australia’s grave in light of Rex’s own precarious standing up until its rescue by the federal government.
By way of refresher, Lim had lambasted Virgin’s “extremely lax and extremely non-courageous” management and its “dysfunctional” board of directors back on May 7, adding that Rex was “probably the most qualified party in Australia to be able to run an airline like Virgin”. No flies on him.
A week later, Rex’s deputy chairman, John Sharp, announced to this newspaper the planned launch of Rex flights between Australian capital cities using 10 new jet aircraft, failing to first inform its own shareholders via the Australian Securities Exchange platform. The new foray, Sharp revealed, will necessitate the issue of $200 million of new Rex shares, a mere 172 per cent of its current $116 million market capitalisation!
CNBC anchor Sri Jegarajah was rightly incredulous. “Mr Lim, with all due respect, you’re calling into question how Virgin Australia was run but Rex was facing bankruptcy in March. How would you characterise your financial health right now and what’s changed since then?”
What’s changed since then is that Rex has been given $67.6 million by Sharp's National Party comrade, Deputy Prime Minister Michael McCormack, a full $53.8 million of that in untied grants, and more than Qantas and Virgin received in Commonwealth relief funding combined. That’s a handout worth 21.3 per cent of Rex’s annual revenues, so the equivalent of giving – not loaning – Virgin $1.2 billion and Qantas $3.8 billion.
Adding insult to injury, McCormack (who is also the Transport Minister and Nationals leader) said on April 2 that “Virgin will also be able to benefit from the $298m package that we put down the other day: $198m for subsidising the 138 routes flown to and from regional centres”. Which was completely false. Virgin did not qualify for a cent of this money.
That same day, McCormack said: “We can’t just pick and select individuals and winners out of this" – words he will be force-fed for the rest of his pitiful career.
Just like Virgin, foreign-owned Rex was going broke. “Even Rex cannot survive the next six months of this global emergency,” its chief operating officer, Neville Howell, pleaded. Even Lim confirmed to CNBC that Rex is only surviving “at least the next six months … thanks to the grant from the government”.
We can’t just pick and select individuals and winners out of this.— Deputy Prime Miinster Michael McCormack
So McCormack told Virgin to find “a market-led solution” but gifted Rex all the cash it needed. Sharp, who just so happens to also be a longstanding National Party official, exalted McCormack’s “meaningful assistance package” designed to “prevent [Rex] from collapsing”. The audacity of the cronyism almost eclipses the cronyism itself.
When Prime Minister Scott Morrison reckoned on April 14, vis-à-vis the aviation sector, that “we haven’t been picking any winners or picking any favourites here”, he cannot have been properly briefed on his deputy’s staggering conduct.
Most galling of all are Rex’s grand (and expensive) growth plans just four weeks after a $67 million taxpayer freebie saved it from bankruptcy. Right now, Rex may be the only airline on earth in expansion mode. The Deputy Prime Muppet emits a resounding silence. Is this what not picking winners looks like?
S28- BE
I would think that with the announcement of Alliance getting 20-25 new jets the chances of Rex getting into jets has taken a severe downturn, pity, would have been a good thing I think
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Rex could still do the golden triangle & make money. They have the slots & feed from their regional ops.
