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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 20th Dec 2020, 03:02
  #481 (permalink)  
 
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That’s the point, Guptar. The majors can sell seats at a loss a lot longer than Rex can. And can refuse to interline baggage. And can tie them up by employing an army of angels to subtly shape opinions on social media. The majors can also manipulate travel agents (admittedly a smaller force these days) They can do many other tricks, large and small, to make Rex become a distant fourth choice when the punters choose an airline.

The rationale for Jetstar was to block any new LCC carrier from establishing itself at the cheap end of the market. Guess how merciless Qantas and Bain will be in the mid-market segment?

Rex is already bleating about Qantas deploying Dash-8s on their previously monopoly routes. That is just the first salvo in a needless market share war that Rex declared.

As has been previously mentioned, their fixed costs are starting to be locked in yet the virus may prevent any meaningful revenue offset for quite a few months yet, You cannot help the timing of that, but it has been a known odds-on possibility for about a year now.

Finally...a small fleet is its own risk: Look what happened to Tiger's reputation when their small fleet prevented service recovery after wx and mx disruptions. People are indeed price sensitive, but they are also smart enough to know when a $10 savings can cost them a day of vacation somewhere. Or to miss that wedding or other significant event.

Anyway...I have been in the industry a lot longer than thirty years, and I am aware that the ratio of failed airlines to remaining ones is probably approaching 50:1. It’s a mug's game.
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Old 21st Dec 2020, 02:45
  #482 (permalink)  
 
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Originally Posted by Australopithecus;

Anyway...I have been in the industry a lot longer than thirty years, and I am aware that the ratio of failed airlines to remaining ones is probably approaching 50:1. Itís a mug's game.

100% correct but if we didnít have dreamers and people willing to roll the dice and give it a go, weíd end up having an Aeroflot or worse, an Air Koryo of the South Pacific........ oh wait.

This is why I feel the need to support new starters until they prove themselves unworthy.
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Old 21st Dec 2020, 09:53
  #483 (permalink)  
 
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Just had an email from Jetstar re a sale.

Looked at 1 March SYD/MEL/SYD & Jetstar are doing $49 each way & nonstop 13 flights in each direction.

Not sure how many SYD/MEL/SYD nonstops in each direction, JQ used to do, but must have been around 5 or 6 last time I looked.
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Old 21st Dec 2020, 14:21
  #484 (permalink)  
 
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It's been a while since I've seen a new starter try to do it "better".

They all just seem to want to do it "cheaper".

I think we've scraped enough out of that barrel.
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Old 22nd Dec 2020, 00:40
  #485 (permalink)  
 
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Originally Posted by Australopithecus
Thatís the point, Guptar. The majors can sell seats at a loss a lot longer than Rex can. And can refuse to interline baggage. And can tie them up by employing an army of angels to subtly shape opinions on social media. The majors can also manipulate travel agents (admittedly a smaller force these days) They can do many other tricks, large and small, to make Rex become a distant fourth choice when the punters choose an airline.

The rationale for Jetstar was to block any new LCC carrier from establishing itself at the cheap end of the market. Guess how merciless Qantas and Bain will be in the mid-market segment?

Rex is already bleating about Qantas deploying Dash-8s on their previously monopoly routes. That is just the first salvo in a needless market share war that Rex declared.

As has been previously mentioned, their fixed costs are starting to be locked in yet the virus may prevent any meaningful revenue offset for quite a few months yet, You cannot help the timing of that, but it has been a known odds-on possibility for about a year now.

Finally...a small fleet is its own risk: Look what happened to Tiger's reputation when their small fleet prevented service recovery after wx and mx disruptions. People are indeed price sensitive, but they are also smart enough to know when a $10 savings can cost them a day of vacation somewhere. Or to miss that wedding or other significant event.

Anyway...I have been in the industry a lot longer than thirty years, and I am aware that the ratio of failed airlines to remaining ones is probably approaching 50:1. Itís a mug's game.

People need to 'Get Real' as the airline business is commercial warfare and the Marquis of Queensbury Rules don't apply!

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Old 22nd Dec 2020, 06:42
  #486 (permalink)  
 
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Originally Posted by Kickstarter
Just had an email from Jetstar re a sale.

Looked at 1 March SYD/MEL/SYD & Jetstar are doing $49 each way & nonstop 13 flights in each direction.

Not sure how many SYD/MEL/SYD nonstops in each direction, JQ used to do, but must have been around 5 or 6 last time I looked.
Pre Covid I believe Jetstar were flying every hour between the 2.
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Old 23rd Dec 2020, 04:13
  #487 (permalink)  
 
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Originally Posted by ANstar
Pre Covid I believe Jetstar were flying every hour between the 2.
not so sure, but maybe 1/2 of them went to AVV not MEL ???????
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Old 23rd Dec 2020, 04:52
  #488 (permalink)  
 
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Another day, another BNEA320 alias. Why???
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Old 23rd Dec 2020, 11:16
  #489 (permalink)  
 
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Originally Posted by BNEA320 (a.k.a Kickstarter)
Just had an email from Jetstar re a sale.

Looked at 1 March SYD/MEL/SYD & Jetstar are doing $49 each way & nonstop 13 flights in each direction.

Not sure how many SYD/MEL/SYD nonstops in each direction, JQ used to do, but must have been around 5 or 6 last time I looked.
Did your most recent alias get banned again, BNEA320?
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Old 23rd Dec 2020, 18:16
  #490 (permalink)  
 
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Originally Posted by Kickstarter
Just had an email from Jetstar re a sale.

Looked at 1 March SYD/MEL/SYD & Jetstar are doing $49 each way & nonstop 13 flights in each direction.

Not sure how many SYD/MEL/SYD nonstops in each direction, JQ used to do, but must have been around 5 or 6 last time I looked.
New marketing idea from Jetstar,Syd-Mel nonstop,genius in the making🤭
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Old 29th Dec 2020, 13:17
  #491 (permalink)  
 
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The Daily Telegraph is running this story.

Probably a bit of a beat up but you never know.

https://www.dailytelegraph.com.au/ne...a71cfd60429646
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Old 29th Dec 2020, 18:57
  #492 (permalink)  
 
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Can only see the headline. I wouldnít expect anything else from this mob and the gov will let them do it as they let them get away with everything else. I hope LKH has access to deep pockets he will need it whatís happening in SY now will happen again Maybe NSW or it maybe be VIC next time.
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Old 29th Dec 2020, 21:08
  #493 (permalink)  
 
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Does someone have a subscription who can post the story?
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Old 29th Dec 2020, 21:20
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Rex Airlines seeking to employ overseas pilots to fly domestic routes

Rex Airlines is seeking to employ non-Australian pilots to fly domestic routes despite many local pilots not having jobs thanks to the pandemic.
John Rolfe

Regional airline REX will suspend three routes as part of a 45 per cent reduction in capacity. The company was tipped to reduce services by 25 per cent after…Rapidly expanding airline Regional Express could *recruit foreign pilots for its new routes from Sydney to Melbourne and Brisbane despite 40 per cent of local captains and first officers still being out of work.

The Singapore-controlled airline is currently seeking dozens of pilots to fly the six 737s it is adding to its fleet.

Using a labour agreement the Department of Home *Affairs granted before the rise of coronavirus and fall of *Virgin Australia, Rex is able to recruit from overseas using “Temporary Skills Shortage” visas — the new name for 457s.

While it has yet to employ any pilots on TSS visas, it won’t rule out doing so.
“Rex has no foreign pilots recruited for its current operations,” a spokesman told The Daily Telegraph on Tuesday.

Rex shares have soared by 300 per cent since March — to their highest level since 2007 — as investors back its bid to become a fully-fledged domestic airline.

Meanwhile, the Australian Federation of Air Pilots is calling for a ban on bringing in foreigners. In a new submission to a Senate inquiry into the future of local aviation after COVID-19, the union says “the federal government should ensure that Australian citizens and residents are provided the priority to re-enter Australian employment opportunities and that operators should not be able to bring in temporary foreign labour”.
REX is looking for foreign pilots to fly domestic routes. Picture: NCA NewsWire / Jeremy PiperFederation president Louise Pole told The Daily Telegraph that a recent survey it conducted among 1000 members found 40 per cent had been forced to find work outside the industry — hopefully only temporarily. Rex deputy chairman John Sharp, a transport minister in the Howard government, de*fended the airline’s need for “flexibility”.

Rex had invested $45-50 million in two training facilities only to have graduates “pilfered” by larger carriers, he said.

In 2008 Rex lost half of its pilots in three months to Qantas, Virgin and Emirates, he added. “If anyone gets any kudos for giving Australians a chance in this industry, it’s Rex,” he said.

Qantas and Virgin hadn’t trained any pilots.
Rex Deputy Chairman and former federal transport minister John Sharp. Picture: AAP Image/Mick TsikasThere had been times when Rex faced not having a captain for scheduled sectors, which meant it had to combine flights.

“It is still necessary for us to access pilots from overseas in times of shortage,” Mr Sharp said.

The labour agreement also covers engineers and *instructors.

Mr Sharp said foreign workers made up less than 10 per cent of Rex’s 1150-strong workforce, which was set to grow by 400. “We are adding people rather than making them redundant” like other airlines, he said.
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Old 29th Dec 2020, 21:27
  #495 (permalink)  
 
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Iím guessing the theory behind this is, they will employ them on different contract paying them same as a SAAB skipper. That can be the only rational to this. Big daddy McCormack will give Sharpie the nod to this.
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Old 29th Dec 2020, 22:01
  #496 (permalink)  
 
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So REX whinge about pilots being stolen, talk up their academies..... and then exclusively hire external 737 pilots.
Right
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Old 29th Dec 2020, 23:07
  #497 (permalink)  
 
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They wont have anywhere to fly their 737 in March anyway, the way its going from today's news no one will open to NSW anytime soon.
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Old 29th Dec 2020, 23:34
  #498 (permalink)  
 
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Well there goes Jan. First half of Feb looking risky. Going to be tight. These two Labor premiers will be holding them by the balls for as long as possible.
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Old 30th Dec 2020, 00:39
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Originally Posted by TimmyTee
So REX whinge about pilots being stolen, talk up their academies..... and then exclusively hire external 737 pilots.
Right
exclusively ? It's just a wake up call.

It's obvious to all what's going on.

Major glut of pilots. Those who want work will have to work for less.

There's going to be fireworks on SYD/MEL come March or end of Feb when business types start booking their March business trips.

It's all about costs & airlines have to keep them low or go belly up. Qantas isn't immune now that new Virgin has much lower costs.

Going to get interesting in about 60 days time.
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Old 30th Dec 2020, 00:52
  #500 (permalink)  
 
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Originally Posted by blubak
New marketing idea from Jetstar,Syd-Mel nonstop,genius in the making🤭
so now jetstar competes with qantas. Dumb as
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