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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 27th Sep 2020, 22:24
  #301 (permalink)  
 
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Convenient for Rex yes, but Rex isn’t the only beneficiary of that program.
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Old 28th Sep 2020, 01:11
  #302 (permalink)  
 
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Originally Posted by brokenagain
Convenient for Rex yes, but Rex isnít the only beneficiary of that program.
True, Rex is not the sole beneficiary of the program; 15 airlines have received grants under the Regional Airline Network Support program. However, Rex is the single largest beneficiary having received over $40 million or 35 per cent of the funds granted under that program. Rex has received more under RANS than what was granted in aggregate to 13 of the 14 other airlines.

Of course, the $40-odd million under RANS is on top of the nearly $54 million that Rex received under the COVID-19 Regional Airlines Funding Assistance program. Rex's grant alone represents just shy of three quarters of the 'last resort' funding made available under that program.
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Old 28th Sep 2020, 06:15
  #303 (permalink)  
 
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Originally Posted by MickG0105
True, Rex is not the sole beneficiary of the program; 15 airlines have received grants under the Regional Airline Network Support program. However, Rex is the single largest beneficiary having received over $40 million or 35 per cent of the funds granted under that program. Rex has received more under RANS than what was granted in aggregate to 13 of the 14 other airlines.

Of course, the $40-odd million under RANS is on top of the nearly $54 million that Rex received under the COVID-19 Regional Airlines Funding Assistance program. Rex's grant alone represents just shy of three quarters of the 'last resort' funding made available under that program.
Of course they have!! Rex is by far the largest regional airline (excluding Qílink) so it stands to reason they receive a large proportion of the funding. As stated, the funding also keeps a bunch of other airlines running into next year as well.
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Old 28th Sep 2020, 06:26
  #304 (permalink)  
 
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If... Rex manage to pull this off, the $150 million investment should give quite a nice return to the HKG fund.

Think about the end result:
- regional ops with $300+ million in revenue
- domestic jet ops $5-600 million in revenue
- even with a 5% profit margin thatís around $40-$50 million in profit per year.

Plus the cashflow from jet ops should help Rex get funding to replace the Saab fleet when the time comes. Also having connections (via jets) may help them win some extra passengers on the regional network.

I know thereís a lot of naysayers on this site, but I think Rex have a good chance of pulling this off. The one major thing going for them is the ability to control costs. Whatever you think of management, this is one key skill in any airline. Without it, airlines fail. Something our friends at VA are learning about now...
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Old 28th Sep 2020, 11:20
  #305 (permalink)  
 
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Originally Posted by aviation_enthus
Of course they have!! Rex is by far the largest regional airline (excluding Qílink) so it stands to reason they receive a large proportion of the funding.
The government has put up over $187 million in COVID-19 regional aviation grants to the end of September and Rex has pocketed just over half of that. That is disproportionate which ever way you look at it.
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Old 28th Sep 2020, 22:58
  #306 (permalink)  
 
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Originally Posted by aviation_enthus
If... Rex manage to pull this off, the $150 million investment should give quite a nice return to the HKG fund.

Think about the end result:
- regional ops with $300+ million in revenue
- domestic jet ops $5-600 million in revenue
- even with a 5% profit margin thatís around $40-$50 million in profit per year.

Plus the cashflow from jet ops should help Rex get funding to replace the Saab fleet when the time comes. Also having connections (via jets) may help them win some extra passengers on the regional network.

I know thereís a lot of naysayers on this site, but I think Rex have a good chance of pulling this off. The one major thing going for them is the ability to control costs. Whatever you think of management, this is one key skill in any airline. Without it, airlines fail. Something our friends at VA are learning about now...
Containing costs is important but if your revenue is garbage you still go broke and I can't see what they are offering that will make people move from QF or VA so their load factors will probably do them in.
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Old 30th Sep 2020, 03:46
  #307 (permalink)  
 
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Rex has signed leasing agreements with two lessors for six Boeing 737-800NG jets, three of which will be used to launch Sydney-Melbourne flights on 1 March 2021.

https://www.executivetraveller.com/n...ng-737-flights
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Old 30th Sep 2020, 04:32
  #308 (permalink)  
 
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ASX release: Rex locks in six boeing 737-800 ng for domestic jet operations......

ex the ASX link here: https://www.asx.com.au/asxpdf/202009...gq39wgnlm9.pdf

an Extract:

30 SEPTEMBER 2020
ASX RELEASE
REX LOCKS IN SIX BOEING 737-800 NG FOR DOMESTIC JET OPERATIONS

Rex today announced that it had yesterday evening signed Letters of Intent with two Lessors for the lease of six Boeing 737-800 NG aircraft.

The first 737 will be delivered on 1 November 2020 with the remaining five aircraft being phased in over the following four months in readiness for the launch of Rexís domestic jet operations.

Rexís Deputy Chairman, the Hon John Sharp AM, said, ďToday I am pleased to announce that we have selected the Boeing 737-800 NG as the aircraft for our domestic jet operations. These aircraft are well received by passengers and have proven to be very suitable for operations in AustraliaĒ...........
rgds
S28- BE
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Old 30th Sep 2020, 08:49
  #309 (permalink)  
 
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It's one thing to accept government assistance to maintain continuity of service to regional areas, it sure as **** is another thing to use that support that will assist you with the setup costs of expansion.


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Old 30th Sep 2020, 10:52
  #310 (permalink)  

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Like being "gifted" an entire Domestic airline?
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Old 30th Sep 2020, 11:01
  #311 (permalink)  
 
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Originally Posted by Buster Hyman
Like being "gifted" an entire Domestic airline?
This came up earlier in the year at the height of the Government backing debate with Virgin and Qantas. I canít recall the exact numbers but pretty sure Qantas paid the Government a multi billion dollar dividend in the years immediately after the merger once the QF stock market float happened.
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Old 30th Sep 2020, 11:51
  #312 (permalink)  
 
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Like being "gifted" an entire Domestic airline?
How many years ago was that? The government divested itself of two airlines... packaged up both airlines and floated it.

In this instance, We're talking about using (effectively) emergency funds REX were crying about to save them 'from impending collapse' and then come out with expansion plans.

Like giving a beggar $20 bucks to get a feed only to find out they were putting that toward a million dollar investment property.

We all know it smells.
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Old 30th Sep 2020, 12:16
  #313 (permalink)  
 
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Six B737 , those senior REX lads are all going to be B737 Captains and TREs, yeah definitely, REX will insist on it 😂🤣😂🤣😂😂🤣😂🤣
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Old 30th Sep 2020, 21:00
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Originally Posted by MelbourneFlyer
Rex has signed leasing agreements with two lessors for six Boeing 737-800NG jets, three of which will be used to launch Sydney-Melbourne flights on 1 March 2021.

https://www.executivetraveller.com/n...ng-737-flights
I dont work for REX & dont intend to but if it means employment for some people currently without or soon to be without a job i would have thought it was a bit of a positive.
They have got money from the govt but so have others & i guess in business you have to use it to best advantage.
I hope for the people working there that it is successful & time will tell i guess,good luck i say.
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Old 30th Sep 2020, 21:15
  #315 (permalink)  
 
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Hmmmm, foreign money represented by an ex Minister for Transport. Nothing to see here folks, we’re just an honest start up, taking on the big companies.
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Old 1st Oct 2020, 08:16
  #316 (permalink)  
 
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This doesn't make any sense. Do Rex really believe that Bain Capital after spending all they have and QF are going to sit idly by and have Rex wander in and take market share on these routes. Rex are going to squeal like a stuck pig when they get the competitive reaction that anyone could see coming. Bain must be absolutely beside themselves with the way this has played out with the closed borders and now with a start up competitor being subsidised by government to the magnitude it is.

While I understand Rex doing it because the subsidies are offered you have to question the appropriateness and magnitude of the subsidy provided to this company which has the Coalition's Ex-Minister of Transport,Ex-Treasurer of the National Party and expert in government travel rorts as Deputy Chairman. Highly questionable no matter how you look at it.

No other industry or individual is receiving subsidies like this. Everyone else is on a subsistence type payment to keep people employed (or at least attached to the company) or receiving legislative protection to keep wolves from the door. While I sympathise with the sentiment that this is providing jobs. What about the jobs it will be costing in VA and QF as they react to a false market created by the government. The concept that Rex is receiving subsidies that enable them to do this must be galling to VA and QF. You shouldn't be able to receive subsidies like this while expanding. No problem with them doing it, I just object to the subsidies that may affect my job.
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Old 1st Oct 2020, 23:03
  #317 (permalink)  
 
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When you remove all the spin all the corruption all the lies all the under the table deals all the rorts & all the back door con jobs at the end of the day the general public who know virtually nothing about how our corrupt Airline industry works they couldn't care less as long as they get to where they are going for the cheapest fare!
V3.0, QF (we never crash), RexJet & any others who wanna be part of the circus are only choices to Mr& Mrs Joe public! The future of flying in this almost destroyed nation will be based on the end users cost more than any other time!
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Old 1st Oct 2020, 23:04
  #318 (permalink)  
 
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Well its good that all the nay sayers here would not lower themselves to work for REX and thereby compromise their integrity because that leaves room for the guys that support REX in their efforts and want to work for them, and there is quite a few
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Old 2nd Oct 2020, 22:24
  #319 (permalink)  
 
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Originally Posted by Arnold E
Well its good that all the nay sayers here would not lower themselves to work for REX and thereby compromise their integrity because that leaves room for the guys that support REX in their efforts and want to work for them, and there is quite a few
Yes,like i said before if it gives someone a job its a positive in my opinion.
Sure the big boys will try to stop them in their tracks but there are plenty of small businesses out there that do nicely & compete daily with the multi nationals.
I guess it remains to be seen but with smart management running it i give it every chance,time will tell.
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Old 2nd Oct 2020, 23:52
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Remember who ever said that competition was good for business has never been in business! It's only good for the consumer...

So if we want a free market, let the games begin and to the winners go the spoils. I think QF won't blink and VA will be under the pump and start blaming everyone and REX well we know their style [leopards don't change their spots]

Good luck and it is keeping good people in a job...
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