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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 29th Jun 2020, 03:30
  #21 (permalink)  
 
Join Date: Jul 2007
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Why does anybody think they will fail, they are run by some pretty switched on people, and like Mr Sharp said they have not made a loss since 2003, how many other airlines in Oz can say that...........crickets
Arnold E is offline  
Old 29th Jun 2020, 03:50
  #22 (permalink)  
 
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Well it helps when you operate on either Government subsidised routes or government protected monopoly routes without competition. Of course they haven't made a loss. They have no competition.
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Old 29th Jun 2020, 03:51
  #23 (permalink)  
 
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nah "we can't pick winners and losers " says our PM
Unless you give nod nod wink wink support to your old mate John Sharp. JS has been very successful squealing about bankruptcy then suddenly finding his airline on the receiving end of taxpayer largesse.
industry insider is offline  
Old 29th Jun 2020, 04:19
  #24 (permalink)  
 
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Mr Sharp said they have not made a loss since 2003,
Yet as soon as COVID struck, they needed an immediate $50+ million to survive? Must have been sailing pretty close to the wind. Funny how they can raise $30m so easily now. Maybe the Govt. should be asking why that wasn't done before the hand went out?
especially since one out of every ten flights in Australia was already a Rex flight
Easy to do when the government pays you to fly even if there is only 1 or 2 pax on board.
Well it helps when you operate on either Government subsidised routes or government protected monopoly routes without competition. Of course they haven't made a loss. They have no competition.
Yet they plan to compete on the most hotly contested routes in Australia. Looks like at mid-service levels too. Lounge access via subscription? Six reviews on Google, all negative. Let's see how it all goes for them. I guess they can prop it up for a while. They'll still have 45 SAABs to sell and lease back.
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Old 29th Jun 2020, 04:46
  #25 (permalink)  
 
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30 million, should last a month.......
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Old 29th Jun 2020, 04:55
  #26 (permalink)  
 
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Rex is certainly onto a winner hear. Bains V2 deal, is not set in stone yet & could still fall over.

Rex can provide plenty of pax, from their regional routes & QF/V2 could give them pax as well (how many places does Rex fly to that no one else does ?)

One of the losers could be regional routes like to Qld ports. Qld govt might have to seduce Alliance to fly at all hours to CNS, TSV etc. Can see some back of clock flying.
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Old 29th Jun 2020, 05:46
  #27 (permalink)  
 
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Wow what a bunch of negative nellies, I would have thought everybody would have cheered them on in the hope they did good otherwise there is going to be a whole heap more people competing for your jobs.
Arnold E is offline  
Old 29th Jun 2020, 05:58
  #28 (permalink)  
 
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Originally Posted by Traffic_Is_Er_Was View Post
Yet as soon as COVID struck, they needed an immediate $50+ million to survive? Must have been sailing pretty close to the wind. Funny how they can raise $30m so easily now. Maybe the Govt. should be asking why that wasn't done before the hand went out?
Spot on! Particularly when the COVID-19 Regional Airlines Funding Assistance guidelines clearly stated that
The funding is seen as a Ďlast resortí option when a range of other strategies to manage an airlineís position have been undertaken.
If they can raise $30 million against their fleet now why wasn't that undertaken right off the bat in the same fashion that Qantas managed their initial capital raising.
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Old 29th Jun 2020, 06:03
  #29 (permalink)  
 
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Originally Posted by Arnold E View Post
Why does anybody think they will fail, they are run by some pretty switched on people, and like Mr Sharp said they have not made a loss since 2003, how many other airlines in Oz can say that...........crickets
Not quite what he said and potentially misleading: Rex’s Deputy Chairman, John Sharp, said, “Rex has the biggest regional network in Australia and we are the only carrier in Australia that has been able to successfully navigate the turmoil and shocks over the last two decades with uninterrupted operational profits since 2003.” Operational Profit doesn't include interest charges or taxes. In addition Rex is in a pretty empty operating environment with some state subsidies, and now it's going from the country league to the AFL!

My guess is they would try to somehow have some spilt between the two so that if it fails it doesn't drag the regional side down with it, otherwise it's a hefty gamble.
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Old 29th Jun 2020, 06:12
  #30 (permalink)  
 
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Originally Posted by smiling monkey View Post
$30 mill will get them 10 Fokker F100s easily, with money left to spare for the AOC!
Not the cheapest to fuel. There will be plenty of others going cheap.
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Old 29th Jun 2020, 06:17
  #31 (permalink)  
 
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Originally Posted by smiling monkey View Post
$30 mill will get them 10 Fokker F100s easily, with money left to spare for the AOC!
$7.5 mil for an F100 in 2015. And thatís for an aircraft almost at the end of itís service being mainly used for low density FIFO ops, not high capacity RPT ops. And with a lower dispatch reliability than what is needed for RPT. Plus spare parts are hard to come by.

What will $30 mil get you? Not much. In 2005 it took roughly $70 million to set up OzJet with 4 737-200s, and that lasted 3 months. And there was no downturn in the market then.
dr dre is offline  
Old 29th Jun 2020, 06:17
  #32 (permalink)  
 
Join Date: Feb 2011
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Tiger has screwed enough people over in the last 13 years. Just be done with the bloody thing and call it a day.

How it has even got this far is beyond me. A senior executive from Singapore told me 10
years ago he is closing it because itís never going to work. I didnít argue with him. He was sacked for plotting the idea. FFS kill it off.
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Old 29th Jun 2020, 10:35
  #33 (permalink)  
 
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Rex are talking about 10 x 737s.

Either $30m was a typo or they've relieved someone who has a massive surplus in the deal of the century.
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Old 29th Jun 2020, 11:22
  #34 (permalink)  
 
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Originally Posted by smiling monkey View Post
$30 mill will get them 10 Fokker F100s easily, with money left to spare for the AOC!
from where?
SemperFly is offline  
Old 29th Jun 2020, 11:24
  #35 (permalink)  
 
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Who told you they are going to buy 737 (or any other jets), I am pretty sure it will be leased.
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Old 29th Jun 2020, 11:27
  #36 (permalink)  
 
Join Date: Dec 2000
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You can probably pick up a few Maxs pretty cheap....some might even have VH on them
ozbiggles is offline  
Old 29th Jun 2020, 11:32
  #37 (permalink)  
 
Join Date: Feb 2011
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They wonít get A320s. Jetstar pinch enough of rex crews let alone supplying their needs with an Airbus rating included.

They will focus more on in house progression. They wonít hire a whole wave of ex type rated unionists. They should lose less Pilots to Jetstar this way also using their own with big shiny big jet rating on the horizon.
PoppaJo is offline  
Old 29th Jun 2020, 11:52
  #38 (permalink)  
 
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You might like to think so, but I’m pretty sure CASA aren’t going to approve everyone only having SAAB time jumping into the LH seat of a heavy twin (intended).
ozbiggles is offline  
Old 29th Jun 2020, 12:00
  #39 (permalink)  
 
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Stored aircraft cost money to be kept parked and airworthy. All liability, no asset.
Any savvy operator with reasonable credibility could offer a leasing company a dollar per airframe per month plus costs of maintenance and right now it would likely be accepted.
Crewi costs will be cheaper than they have been for several years.
Mach E Avelli is offline  
Old 29th Jun 2020, 12:08
  #40 (permalink)  
 
Join Date: Jul 2001
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Iím probably biased but EJets would make perfect sense. Plenty of experienced personnel and a great regional/domestic jet that would feel right at home on most of the existing network. A really nice aircraft.
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