REX to transition to ATRs, start domestic jet ops
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
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
It’s a decision they have had to make because they have treated their staff like crap - and those employees (particularly pilots) are now leaving in their droves.
They are flying for Link and Airnorth
Some of the Fokkers are flying for VA
They still have 32 Fokkers flying around with the last delivered in May 2019, many in this batch were bought just for spare parts
The first 190 arrived 18 months later and were bought to lease to Link
Apples with apples morono
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
Well I believe you are wrong. Even with a slight slowing of the economy that MAY occur, aviation is still on the up swing.
As I said earlier they appear to be consolidating their routes so no real need to keep 57 SAABs flying
A company does not shrink their way in to profitability. The share market agrees.
So how many 190s are doing FIFO work ?
They are flying for Link and Airnorth
They are flying for Link and Airnorth
There is no downturn in the economy, COVID savings would be long gone and the public are just adjusting, like the rest of us. As pilots we can all see the amount of traffic going through the major airports and at my company you struggle to get a staff travel seat.
So how many 190s are doing FIFO work ?
They are flying for Link and Airnorth
Some of the Fokkers are flying for VA
They still have 32 Fokkers flying around with the last delivered in May 2019, many in this batch were bought just for spare parts
The first 190 arrived 18 months later and were bought to lease to Link
Apples with apples morono
They are flying for Link and Airnorth
Some of the Fokkers are flying for VA
They still have 32 Fokkers flying around with the last delivered in May 2019, many in this batch were bought just for spare parts
The first 190 arrived 18 months later and were bought to lease to Link
Apples with apples morono
33 E190s, 18 to QFlink, 3 to Air North via dry lease and 9 for FIFO with the remaining three in maint.
As of Jan this year.
Source Results press 10th Aug
You research skills seem to be non existent and on par with the average keyboard warrior, your questions are answered in the financial results, latest:
33 E190s, 18 to QFlink, 3 to Air North via dry lease and 9 for FIFO with the remaining three in maint.
As of Jan this year.
Source Results press 10th Aug
33 E190s, 18 to QFlink, 3 to Air North via dry lease and 9 for FIFO with the remaining three in maint.
As of Jan this year.
Source Results press 10th Aug
I have no doubt that QQ will start replacing their Fokkers with the next batch of 190s
QQ are just further down the track in this regard than ZL as they have 190s on order already where as ZL have no SAAB replacements on order as yet
REX would seem to be taking logical steps
1) Mainline can only go 1 of 2 ways, expand or abandon, obviously they are going to grow this
2) Regional
Pilot shortage and staff costs have wiped some cost advantages they had over QLink, combined with suitable SAAB replacement forces them to revaluate their operations
Larger Q400s is the logical way forward as they already have a small fleet over at NJE with the latest just delivered this month
The future Q400 ops will need to see a reduction on some routes whilst others will simply be dropped
They have already cut some frequencies and as a result have increased load factors on the remaining services, whilst other unprofitable routes have been dropped all together
REX, as a business, no longer want to serve every little town like Grafton and Lismore just for the sake of keeping their birds in the air
Sharp, Pelican, Nexus etc can play in that market
Dubbo, Wagga, Albury, Coffs, Port etc are right type for Q400s and they will concentrate on these type of routes along with subsidised routes
REX spent their first 20 years on regional with loads around 50% making marginal profits, what is the point of a continuation of this model when
1) Their fleet is now reaching the end of its useful life and there is no replacement out there
2) To staff this fleet is now much more expensive for the revenue generated
3) A Q400 can generate twice the income for roughly the same staff costs as a SAAB
IMO REX are adapting their business model in a sensible way for the long term
Irrespective, QQ are doing with their Fokkers exactly what ZL are doing with their SAABs
I have no doubt that QQ will start replacing their Fokkers with the next batch of 190s
QQ are just further down the track in this regard than ZL as they have 190s on order already where as ZL have no SAAB replacements on order as yet
REX would seem to be taking logical steps
1) Mainline can only go 1 of 2 ways, expand or abandon, obviously they are going to grow this
2) Regional
Pilot shortage and staff costs have wiped some cost advantages they had over QLink, combined with suitable SAAB replacement forces them to revaluate their operations
Larger Q400s is the logical way forward as they already have a small fleet over at NJE with the latest just delivered this month
The future Q400 ops will need to see a reduction on some routes whilst others will simply be dropped
They have already cut some frequencies and as a result have increased load factors on the remaining services, whilst other unprofitable routes have been dropped all together
REX, as a business, no longer want to serve every little town like Grafton and Lismore just for the sake of keeping their birds in the air
Sharp, Pelican, Nexus etc can play in that market
Dubbo, Wagga, Albury, Coffs, Port etc are right type for Q400s and they will concentrate on these type of routes along with subsidised routes
REX spent their first 20 years on regional with loads around 50% making marginal profits, what is the point of a continuation of this model when
1) Their fleet is now reaching the end of its useful life and there is no replacement out there
2) To staff this fleet is now much more expensive for the revenue generated
3) A Q400 can generate twice the income for roughly the same staff costs as a SAAB
IMO REX are adapting their business model in a sensible way for the long term
I have no doubt that QQ will start replacing their Fokkers with the next batch of 190s
QQ are just further down the track in this regard than ZL as they have 190s on order already where as ZL have no SAAB replacements on order as yet
REX would seem to be taking logical steps
1) Mainline can only go 1 of 2 ways, expand or abandon, obviously they are going to grow this
2) Regional
Pilot shortage and staff costs have wiped some cost advantages they had over QLink, combined with suitable SAAB replacement forces them to revaluate their operations
Larger Q400s is the logical way forward as they already have a small fleet over at NJE with the latest just delivered this month
The future Q400 ops will need to see a reduction on some routes whilst others will simply be dropped
They have already cut some frequencies and as a result have increased load factors on the remaining services, whilst other unprofitable routes have been dropped all together
REX, as a business, no longer want to serve every little town like Grafton and Lismore just for the sake of keeping their birds in the air
Sharp, Pelican, Nexus etc can play in that market
Dubbo, Wagga, Albury, Coffs, Port etc are right type for Q400s and they will concentrate on these type of routes along with subsidised routes
REX spent their first 20 years on regional with loads around 50% making marginal profits, what is the point of a continuation of this model when
1) Their fleet is now reaching the end of its useful life and there is no replacement out there
2) To staff this fleet is now much more expensive for the revenue generated
3) A Q400 can generate twice the income for roughly the same staff costs as a SAAB
IMO REX are adapting their business model in a sensible way for the long term
Alliance are in the position to borrow significant amounts of cash, to the tune of a few hundred million to fund the E190 project. They are also highly profitable. They are having no issues getting cash, with a further $100m a few months ago. They are continuously beating guidance given to the market. Lenders are quite comfortable with QQ, with highly profitable work and contracts lined up for these new aircraft.
Now Rex……Rex has no ability to fund anything and are highly unprofitable. Why would anyone borrow money to them, you have no idea what you are going to get, they have no accurate guidance, and have never been highly profitable.
Now Rex……Rex has no ability to fund anything and are highly unprofitable. Why would anyone borrow money to them, you have no idea what you are going to get, they have no accurate guidance, and have never been highly profitable.
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There is no need to borrow to lease aircraft
The PAG money was not to buy 737s it is/was for associated costs
Even start ups and loss making airlines can lease aircraft point in case VA
The PAG money was not to buy 737s it is/was for associated costs
Even start ups and loss making airlines can lease aircraft point in case VA
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REX spent their first 20 years on regional with loads around 50% making marginal profits, what is the point of a continuation of this model when
1) Their fleet is now reaching the end of its useful life and there is no replacement out there
2) To staff this fleet is now much more expensive for the revenue generated
3) A Q400 can generate twice the income for roughly the same staff costs as a SAAB
1) Their fleet is now reaching the end of its useful life and there is no replacement out there
2) To staff this fleet is now much more expensive for the revenue generated
3) A Q400 can generate twice the income for roughly the same staff costs as a SAAB
The Q400 on the other hand was born with structural problems, has had ongoing in service maintenance issues, requires high work rates to be profitable, burns a lot more fuel in the region of double the SAAB per sector, and will cost more than 3 times the SAAB to operate in real terms whilst only carrying twice the passengers. To start with pilots will be 20-30% more expensive, there's an extra flight attendant as well as having to pay one as a CM. Considering as you said they fly around with 50% load factors at times that would mean load factors on the Q400 of 25%. So what routes will sustain this Q400, possibly West Australian runs, but most of the East Coast current runs require frequency to be profitable, and there's no point having Q400s that run AM/PM only RPT and are empty in the middle of the day. You only have to look at QLinks route structure, most of the Rex routes they compete with 300s, why hasn't QLink bought more Q400s you have to ask? Especially if as you say there's a fleet out there ready for purchase.
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Essentially Deano has very little clue what he’s talking about and uses bull**** to try and get his ill informed opinions across, trying to justify Rex’s bad business practices.
Unless you are looking to actively test the efficacy of your blood pressure medication, best to avoid arguing with idiots.
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Personally I would not want to be anywhere near management level in Rex at the moment, if the company folds that is. ASIC will have some serious questions for all levels of management and it will be extremely stressful for those that can not leave the country, this is not the Ansett administration where some foreign interest can be blamed and the Kendall/Hazos factions slide out the bottom. Remembering that lack of action on problems is just as bad as creating problems. I think sometimes they may forget its a share listed public company. From what I hear there still has been no engagement with the workforce to fix crewing issues. How the SAAB fleet got to the position its in without engines or whatever is something that's worthy of an investigation in itself. There's a whole can of worms to answer "The SAABs were very profitable and then suddenly they were not?", considering there's no major AD, or airframe limitation affecting the fleet there is only limited imagination as to why it's got to where it is. Link seems to be going ok, Sharps is kicking along with Metros, why is Rex failing?
REX has never been especially profitable in competitive operations. Much of its money was made on the back of subsidised monopoly routes. Strategically, it has made numerous missteps probably the biggest of which was moving away from VA when logic suggested it should get closer. Sharp etc then stumbled into a jet operation on the basis that VA would collapse over COVID. It quickly became obvious that this was a false assumption and COVID actually gave VA time to restructure without significant inconvenience to customers. The smart play at that point would have been to get close to the new VA but REX chose to believe it could somehow do something unique which it patently can't.
As it currently stands, it is hard to see how it now sets itself up for the future. It has a marginal jet operation that lacks scale and is without anything unique to drive new customers towards it. BONZA has lots of issues but, at least, it is trying to be different.
The market will be loathe to extend finance to any REX restructure. Lease companies may agree to lease them planes but there will be a significant risk premium built into those lease rates. The initial 737s were leased on cheap pandemic rates. These leases are now rolling over and it is likely the unit costs on these ancient 738s will increase by up to 60%.
Comparisons with Alliance are fallacious. Alliance is either replacing its existing ageing F100 fleet or adding new capacity on the back of locked in long-term wet-leases with QLink. They are financially sound and are able to buy outright the secondhand E190s at bargain prices. Had REX got closer to VA rather than walking away and allowing Link in, they could've acquired new fleet on the same basis. Alas, they didn't.
As it currently stands, it is hard to see how it now sets itself up for the future. It has a marginal jet operation that lacks scale and is without anything unique to drive new customers towards it. BONZA has lots of issues but, at least, it is trying to be different.
The market will be loathe to extend finance to any REX restructure. Lease companies may agree to lease them planes but there will be a significant risk premium built into those lease rates. The initial 737s were leased on cheap pandemic rates. These leases are now rolling over and it is likely the unit costs on these ancient 738s will increase by up to 60%.
Comparisons with Alliance are fallacious. Alliance is either replacing its existing ageing F100 fleet or adding new capacity on the back of locked in long-term wet-leases with QLink. They are financially sound and are able to buy outright the secondhand E190s at bargain prices. Had REX got closer to VA rather than walking away and allowing Link in, they could've acquired new fleet on the same basis. Alas, they didn't.
Much of its money was made on the back of subsidised monopoly routes.
There is one reality, that is management has failed to ensure sufficient crew and engineers to operate the SAABs. Other than that the SAAB operation would be very profitable right now, as it is most East coast operations are on very reduced schedule and facing service disruptions regularly, which no doubt will result is less patronage as passengers opt to drive/train/bus instead for reliability.
Had REX got closer to VA rather than walking away and allowing Link in, they could've acquired new fleet on the same basis. Alas, they didn't.