Go Back  PPRuNe Forums > PPRuNe Worldwide > Australia, New Zealand & the Pacific
Reload this Page >

REX to transition to ATRs, start domestic jet ops

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

REX to transition to ATRs, start domestic jet ops

Old 30th Aug 2023, 02:28
  #2421 (permalink)  
ebt
 
Join Date: Feb 2006
Location: Perth
Posts: 233
Received 16 Likes on 8 Posts
Originally Posted by MickG0105
Rex FY23 Results. A statutory profit (that is correct, profit) after tax of $14.4 million.

In a master-stroke of creative accounting they decided that NJE, a business that they paid $48.18 million for, is worth $142.673 million (that is despite them having previously valued NJE at $77.645 million back in December 2022).

​​​​​​Fernangling aside, they lost $31.7 million. Passenger revenues collapsed by over 8.5 percent in the six months to 30 June.
Worth noting too that the NJE "fair value gain" of $44.5 million came despite the unit contributing losses of $6.3 million to the bottom line.

I want some of what they're smoking.
ebt is offline  
The following 3 users liked this post by ebt:
Old 30th Aug 2023, 02:50
  #2422 (permalink)  
 
Join Date: Oct 2007
Location: Aus
Posts: 2,786
Received 415 Likes on 229 Posts
Originally Posted by MickG0105
Rex FY23 Results. A statutory profit (that is correct, profit) after tax of $14.4 million.

In a master-stroke of creative accounting they decided that NJE, a business that they paid $48.18 million for, is worth $142.673 million (that is despite them having previously valued NJE at $77.645 million back in December 2022).

​​​​​​Fernangling aside, they lost $31.7 million. Passenger revenues collapsed by over 8.5 percent in the six months to 30 June.
Haven't bothered to read it, but did the pax numbers collapse year on year, or just since December, as the months from Feb to mid year are traditionally low times for Australian airlines.

Anyway is all has to be Audited by an independent agency for the ASX, so they can only be so creative.

Imagine how much more 'profit' they may have actually made if they had retained even 30% of the pilots that left and were able to operate normal services, rather than bleed profit to QF group.
43Inches is offline  
The following 2 users liked this post by 43Inches:
Old 30th Aug 2023, 03:11
  #2423 (permalink)  
 
Join Date: Dec 2005
Location: Australia
Posts: 50
Received 3 Likes on 3 Posts
I guess it is embarrassing when pre Covid years Rex always bolstered we made more profits than QF And VA combined. Now creative accounting to match profits with the big players. Maybe the scones and clotted cream doesn’t taste that good. Reap what you sow Rex. 👍
gamma69 is offline  
Old 30th Aug 2023, 04:40
  #2424 (permalink)  
 
Join Date: Jul 2018
Location: Sydney
Posts: 637
Received 119 Likes on 46 Posts
Sugarcoat it for me Deano
Ladloy is offline  
The following 5 users liked this post by Ladloy:
Old 30th Aug 2023, 06:23
  #2425 (permalink)  
 
Join Date: Feb 2011
Location: Oz
Age: 68
Posts: 1,913
Received 295 Likes on 124 Posts
Originally Posted by Ladloy
Sugarcoat it for me Deano
7777777777s are coming. LAX and DOH

Itís all gonna be good!
PoppaJo is offline  
The following 2 users liked this post by PoppaJo:
Old 30th Aug 2023, 06:55
  #2426 (permalink)  
 
Join Date: Oct 2017
Location: Pprune is ******
Posts: 165
Received 178 Likes on 74 Posts
Where's Deano? Doin his tripler endo? "Our hearts in Doha"
dejapoo is offline  
The following users liked this post:
Old 30th Aug 2023, 07:24
  #2427 (permalink)  
 
Join Date: Oct 2007
Location: Aus
Posts: 2,786
Received 415 Likes on 229 Posts
Originally Posted by dejapoo
Where's Deano? Doin his tripler endo? "Our hearts in Doha"
Get it right, he's taking delivery of the new battery powered electric A350. It will commence operations on the new hub busting Mildura direct Doha service, codeshare with Delta, and Bonza.
43Inches is offline  
Old 30th Aug 2023, 09:29
  #2428 (permalink)  
 
Join Date: May 2016
Location: Sunshine Coast
Posts: 1,163
Received 190 Likes on 95 Posts
One positive to come out of this; with the profit before tax of (ahem) $12.8 million, that should clear any hurdles for backpay under the pilots' EBA.

What will be interesting is whether the "profit" is deemed to have also cleared the hurdles for the Executive Bonus Share Plan. Any betting on how that will play out?
MickG0105 is offline  
The following users liked this post:
Old 30th Aug 2023, 09:53
  #2429 (permalink)  
 
Join Date: Oct 2017
Location: Pprune is ******
Posts: 165
Received 178 Likes on 74 Posts
Originally Posted by 43Inches
Get it right, he's taking delivery of the new battery powered electric A350. It will commence operations on the new hub busting Mildura direct Doha service, codeshare with Delta, and Bonza.
Has Baxter st approved such a project? Wotabout mouthpiece his Excellency Akbar Al Beetroot Face?
dejapoo is offline  
Old 30th Aug 2023, 09:57
  #2430 (permalink)  
 
Join Date: Oct 2007
Location: Aus
Posts: 2,786
Received 415 Likes on 229 Posts
Originally Posted by MickG0105
One positive to come out of this; with the profit before tax of (ahem) $12.8 million, that should clear any hurdles for backpay under the pilots' EBA.

What will be interesting is whether the "profit" is deemed to have also cleared the hurdles for the Executive Bonus Share Plan. Any betting on how that will play out?
You are joking right? You of all should know how this 'profitable loss' or is it a 'loss making profit', will be worded in regards to who gets what...
43Inches is offline  
Old 30th Aug 2023, 16:57
  #2431 (permalink)  
 
Join Date: Nov 2016
Location: Sunny Coast
Posts: 397
Received 14 Likes on 12 Posts
Reducing operating loss by over $70mil per annum is nothing to be sneezed at, particularly when you consider
REX is a transitioning airline moving from purely regional to mainline jet ops with regional feed
Around double the revenue from 2022 to 2023
There is still coin available from PAG
Pilot drain and maintenance issues due to supply chain problems

Big picture dictates an operating loss of $32mil is not the end of the world
250 or so return trips sold per day will wipe this out rather quickly
Deano969 is offline  
Old 31st Aug 2023, 08:15
  #2432 (permalink)  
ebt
 
Join Date: Feb 2006
Location: Perth
Posts: 233
Received 16 Likes on 8 Posts
Originally Posted by Deano969
Reducing operating loss by over $70mil per annum is nothing to be sneezed at, particularly when you consider
REX is a transitioning airline moving from purely regional to mainline jet ops with regional feed
Around double the revenue from 2022 to 2023
There is still coin available from PAG
Pilot drain and maintenance issues due to supply chain problems

Big picture dictates an operating loss of $32mil is not the end of the world
250 or so return trips sold per day will wipe this out rather quickly
OK sure it's good, but it is all being driven by the revenue coming back as it ramped back up of operations, and that as we know hit a bit of a pothole. Rex lost focus on their core regional business and are going to be sub-scale in the jet business for a while. They are going through the PAG coin pretty quickly, and that will only accelerate as the costs are rising above what they must have planned for. Oh, and what's the price of oil like these days?

Look, I personally want to see Rex thrive and become a viable third competitor across the country, and perhaps they can. It's just at this juncture, it seems that the spin machine is running hard and they are facing some challenges. They aren't insurmountable, but you also need to be realistic.
ebt is offline  
Old 1st Sep 2023, 02:11
  #2433 (permalink)  
 
Join Date: Feb 2012
Location: BBN
Posts: 984
Received 94 Likes on 45 Posts
I have just come into few thousand from sharks looking to re invest soooo is it a good time to buy Rex shares they seem very cheap!
SHVC is offline  
The following users liked this post:
Old 1st Sep 2023, 02:43
  #2434 (permalink)  
 
Join Date: Nov 2016
Location: Sunny Coast
Posts: 397
Received 14 Likes on 12 Posts
Buy low sell high
Deano969 is offline  
Old 1st Sep 2023, 02:52
  #2435 (permalink)  
 
Join Date: Nov 2016
Location: Sunny Coast
Posts: 397
Received 14 Likes on 12 Posts
New route BNE-ADL
Deano969 is offline  
Old 1st Sep 2023, 11:53
  #2436 (permalink)  
 
Join Date: May 2016
Location: Sunshine Coast
Posts: 1,163
Received 190 Likes on 95 Posts
Originally Posted by SHVC
I have just come into few thousand from sharks looking to re invest soooo is it a good time to buy Rex shares they seem very cheap!
Well, not that this should be treated as financial advice, but 5.30pm-ish on Friday and here's the view from Rexville


ZL143 SYD-MEL, ZL368 SYD-BNE, ZL152 MEL-SYD

Rex's heart might be in the country but you get the feeling that their customers are on someone else's flights.
MickG0105 is offline  
Old 1st Sep 2023, 18:15
  #2437 (permalink)  
 
Join Date: Nov 2016
Location: Sunny Coast
Posts: 397
Received 14 Likes on 12 Posts
88 103 74 sold respectively meh, not great but certainly could be doing better
Obviously they could be selling more, but they are selling seats for higher prices that a few months ago so their yields per seat are up a fair bit, they seem to be pitching their pricing around the same as VA
Had a look at QF for the same say, loads looking more solid, however they have a lot of blocked seats on most flights, are these sold or reserved for staff?
Deano969 is offline  
Old 1st Sep 2023, 20:14
  #2438 (permalink)  
 
Join Date: Jul 2018
Location: Sydney
Posts: 637
Received 119 Likes on 46 Posts
Originally Posted by Deano969
88 103 74 sold respectively meh, not great but certainly could be doing better
Obviously they could be selling more, but they are selling seats for higher prices that a few months ago so their yields per seat are up a fair bit, they seem to be pitching their pricing around the same as VA
Had a look at QF for the same say, loads looking more solid, however they have a lot of blocked seats on most flights, are these sold or reserved for staff?
Going with your argument, QFs price is much higher.
Ladloy is offline  
Old 1st Sep 2023, 22:02
  #2439 (permalink)  
 
Join Date: Apr 2010
Location: Brisbane
Age: 58
Posts: 267
Received 32 Likes on 27 Posts
Originally Posted by Deano969
88 103 74 sold respectively meh, not great but certainly could be doing better
Obviously they could be selling more, but they are selling seats for higher prices that a few months ago so their yields per seat are up a fair bit, they seem to be pitching their pricing around the same as VA
Same day is somewhat irrelevant, 5Pm Friday should be a sellout which it was with JQ/QF and VA at that time on the triangle. It’s when you make the yield to cover less favoured times. if you are seeing a lot of blocked seats on a Qantas flight same day then your not looking at accurate seat maps, blocks are removed at T-80 for QF with the exception of chairman’s lounge. At least Rex seem to be filling the J cabin, maybe they could look at all J, maybe not given what happened to Ozjet. As for yield, fare bucket information for each flight would give you a better idea than spot pricing.
markis10 is offline  
Old 1st Sep 2023, 22:43
  #2440 (permalink)  
 
Join Date: May 2016
Location: Sunshine Coast
Posts: 1,163
Received 190 Likes on 95 Posts
Trying to avoid that sort of rank nonsense is why I use the Block function. If you have aircraft tooling around the triangle only half full on a Friday between 5pm and 8pm, something is wrong. And not just "meh" wrong, something is desperately wrong.

On the first Friday of September last year, Rex moved a shade over 1,430 pax between Sydney and Melbourne on ten flights (5 return services). Yesterday, they had fewer than 1,400 pax spread over their 14 flights between Sydney and Melbourne.

The maths is not particularly difficult. On what should be a money making day on a money making route, Rex were haemorrhaging.
MickG0105 is offline  

Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.