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REX to transition to ATRs, start domestic jet ops

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REX to transition to ATRs, start domestic jet ops

Old 18th Oct 2023, 02:34
  #2581 (permalink)  
 
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Can't fund it, just hand over the keys, can't get blood from a stone, but you can try and sell it to some other sucker after a bit of surface 'change'. If Rex can't afford the change over, they can just force administration, PAG will be down the list of debtors with staff and so first, so it would be in their interest to just take over and run it if there is profit to be made. Maybe Rexs plan is for everybody to leave, at least they don't have to pay out redundancies if there's no staff left, it's about the only way their current HR policy makes any sense. From what I understand half or so of Link pilots are ex Rex, working for less, that probably tells you something... Although Rex is not alone in it's suicide march, QLink is there with them.
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Old 18th Oct 2023, 04:27
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Originally Posted by dr dre
No joke:

REX's deputy chairman has warned the airline will have to cut more services and flight frequencies across its regional network unless the government acts quickly to stop "Qantas's predatory behaviour" and help stem a loss of pilots.

This was the first line in a lot pf paywalled news articles this morning. I can't see the rest of the article, does anyone know what specific measures he wants the government to enact to stop his pilots freely choosing to work for an alternative employer? Re-introduction of slavery perhaps?
how is qanta's poaching causing half a dozen saab's grounded without engine's, looks like they can't keep there own house in order

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Old 18th Oct 2023, 04:53
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A mate showed me a picture of the Wagga SAABs, way more than double what's in that picture sitting sans engine. I don't have the picture to post though.
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Old 18th Oct 2023, 05:12
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They'll find a way to blame Qantas for the missing engines and props on these sad looking Saabs.
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Old 18th Oct 2023, 07:05
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Why blame yourself when you can blame others?
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Old 18th Oct 2023, 11:39
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Originally Posted by PoppaJo
I assume another cash injection will be needed to come from somewhere?

Don’t Rex need to fund the loss associated with any notes that are traded below $1.50? Mick might be across the financial logistics better than most.
The PAG financing deal is structured such that when Rex draws on the $150 million, PAG are issued with Convertible Notes at a face value of $1.00 for the amount drawn down. At any time from the third anniversary of the First Drawdown on 16 March 2021 to the fifth anniversary (the Maturity Date) PAG may convert all or a portion of the Convertible Notes to shares at a conversion value of $1.50.

For example, when Rex drew down the first $50 million from PAG on 16 March 2021, Rex issued PAG with 50 million $1 convertible notes that could be converted to 333,333,333 shares at a conversion price of $1.50 as early as 16 March 2024. To the extent that there is a downside difference between the conversion price of $1.50 and the trading price, PAG won't elect to convert. They would instead continue to take interest on the notes.

Things potentially get messy for Rex at the Maturity Date if their shares are trading under $1.50.
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Old 18th Oct 2023, 11:42
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Originally Posted by unobtanium
how is qanta's poaching causing half a dozen saab's grounded without engine's, looks like they can't keep there own house in order
They must be the ones that Rex are going to convert to electric.
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Old 18th Oct 2023, 11:43
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Originally Posted by 43Inches
A mate showed me a picture of the Wagga SAABs, way more than double what's in that picture sitting sans engine. I don't have the picture to post though.
We all know they are waiting their hybrid lectric conversions, sheesh givem a break!!!

(yes sarcasm).

🙃
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Old 18th Oct 2023, 12:12
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Can’t sustain frequency on profitable routes.

Can’t retain staff.

Can’t procure engines.

Aircraft shortage.

Crew shortage.

Share price keeps going down down down.

How much is management being paid for their ‘expertise’ ? If I performed this badly I’d be sacked!
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Old 19th Oct 2023, 01:24
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Originally Posted by swingswong
m

How much is management being paid for their ‘expertise’ ? If I performed this badly I’d be sacked!
Here’s some of LKH’s commentary all taken from recent Annual reports:

2023

So while Qantas announced with great fanfare a record profit of Underlying Profit Before Tax of $2.47 billion, Rex reported one of its worst ever performances with a Group operating loss of over $30m. It is most disheartening to see the wicked prosper. However, in this darkest of hour, I am reminded of, and draw strength from, Rex’s guiding principle that headlines Rex’s Value Statement published in every single annual report since 2005: “What does it profit a Company if it gains the whole world and loses its own soul.”


2022

I too have been driven to despair many a times. Reflecting on the last 20 years, it seems like Sisyphus from Greek mythology, where every time we made some progress, the external storms came to push us downhill

2021

In parting, I would like to share excerpts from my favourite poem which I find so appropriate for the current situation:

“IF” by Rudyard Kipling follows


I think the term “cooked” may be appropriate
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Old 19th Oct 2023, 01:34
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Originally Posted by swingswong
How much is management being paid for their ‘expertise’ ? If I performed this badly I’d be sacked!
20% more since the covid payments from their mates
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Old 19th Oct 2023, 01:39
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Originally Posted by unobtanium
how is qanta's poaching causing half a dozen saab's grounded without engine's, looks like they can't keep there own house in order
Sorry, but I can't read your posts until you inject some basic punctuation and grammar at least.
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Old 19th Oct 2023, 02:00
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I think the number of grounded may also be well over 'half a dozen'. One has to really think, considering these sort of engines have TBO's well in excess of 3000 hours, how does half the fleet suddenly timex in such a short space of time. This is definitely not just related to Covid, there's something else at play.

“What does it profit a Company if it gains the whole world and loses its own soul.”
So, considering it's heart and soul was servicing country NSW, SA and VIC, I would say it is losing that soul very fast. If it's soul was it's employees, they are leaving in droves, not just pilots.
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Old 19th Oct 2023, 02:11
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Originally Posted by Global Aviator
We all know they are waiting their hybrid lectric conversions, sheesh givem a break!!!

(yes sarcasm).

🙃
They'll always be together, however far it seems, together in electric dreams.
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Old 19th Oct 2023, 02:51
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I stand by what I have said earlier
REX is morphing into mainline jet ops with regional feed and bit by bit eliminating low volume or non feeder regional routes
The las SAAB they bought was July 22 likely for parts as it's been stored at Wagga since delivery and in July this year they sold a SAAB to Chathams so I don't think the amount of SAABs available is a concern to them
Also they have just secured their 10th 738 due November

So a bunch or old SAABs parked for parts should come as no surprise as they scale back regional and strip down old frames to keep the remainder running until replacement just like QQ with their F100s
They are more valuable for parts than to sell off

In time the SAABs will be replaced with 10-15yo Q400s which will be right sized for their remaining routes, think Coffs, Port, Wagga, Dubbo
Frequencies will drop back on most regional routes, but that just puts them in the same boat as QF with some being cut and picked up by the likes of Pelican
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Old 19th Oct 2023, 03:24
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Not sure where you are getting a 'fleet' of 10-15 year old Q400s. Then there's the small other thing called 'price'.

Anyway, cannibalizing your own fleet to make ends meet is not a sign of a healthy company, it's a point of last resort. And the only reason that Rex would not need those SAABs flying would be that they have no crew, unless they have completely pissed off their customer base that is. Oh, and on pulling out of routes because they are loss making, funny, QLink just happened to throw a dash 8 on most of those routes at reasonable frequencies, so is QLink now making losses for the fun of it?

Last edited by 43Inches; 19th Oct 2023 at 03:39.
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Old 19th Oct 2023, 07:43
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The future isn’t Q400s on the current balance sheet, perhaps a 737 operation alongside a smaller Saab operation. They need the 737 operation to start pumping some cash, and that time is right now. Some of the highest margin routes on earth, they should be raking it in.

Who is going to fund a Q400 fleet changeover? The company is red ink all over. Run a mile.


Last edited by PoppaJo; 19th Oct 2023 at 08:03.
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Old 20th Oct 2023, 05:26
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Originally Posted by 43Inches
Anyway, cannibalizing your own fleet to make ends meet is not a sign of a healthy company, it's a point of last resort.
Tell that to Alliance
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Old 20th Oct 2023, 05:40
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Originally Posted by Deano969
Tell that to Alliance
They’re not reducing the size of their fleet to do it though. Rex are literally pulling pieces off aircraft that were otherwise perfectly good, until they had no pilots to fly them and no spares. Alliance have gone into E190’s.

Bad comparison buddy
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Old 20th Oct 2023, 06:40
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As I said earlier they appear to be consolidating their routes so no real need to keep 57 SAABs flying
If they were not reworking their network, then fair point

REX are changing in more ways than just adding mainline
Moving forward mainline will be their core operation along with with regional feed
They needed to move away from the Kendell / Hazelton merger days as there are no 30 seat planes being made to replace their SAABs
They will part out some frames to maintain service until Q400s start to replace them and mid life Q400s will become readily available shortly due to the economic downturn
Twice daily regionals will drop to daily whilst others will be and have been cut
REX has dropped some routes over the last couple of years that don't fit the new model, but importantly added routes like Coffs and Port Macquarie that do fit the new model, ie. feeding into mainline and higher frequency
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