Go Back  PPRuNe Forums > PPRuNe Worldwide > Australia, New Zealand & the Pacific
Reload this Page >

REX to transition to ATRs, start domestic jet ops

Australia, New Zealand & the Pacific Airline and RPT Rumours & News in Australia, enZed and the Pacific

REX to transition to ATRs, start domestic jet ops

Old 29th Jun 2020, 12:27
  #41 (permalink)  
 
Join Date: Oct 2016
Location: Melbourne
Posts: 110
Sharp said right at the end of the 4 corners program "their is definitely room for 2 managed airlines".
That didn't make sense. Unless he is counting on Virgin failing. Did anyone else pick that up.
Definitely would like to have been a fly on the wall when Senator Rex and Sharpy
were in the Wagga Wagga pub.
Turnleft080 is offline  
Old 29th Jun 2020, 13:04
  #42 (permalink)  
 
Join Date: Feb 1999
Location: Lost in Space
Posts: 169
Originally Posted by Turnleft080 View Post
Sharp said right at the end of the 4 corners program "their is definitely room for 2 managed airlines".
That didn't make sense. Unless he is counting on Virgin failing. Did anyone else pick that up.
Definitely would like to have been a fly on the wall when Senator Rex and Sharpy
were in the Wagga Wagga pub.
Yes.
That was an interesting Freudian slip. Either Rex is bullshitting to appease the ASX non disclosure Cockup, or something more sinister is afoot.
I posit the former.
t_cas is offline  
Old 29th Jun 2020, 13:24
  #43 (permalink)  
 
Join Date: Jan 2008
Location: NQLD
Age: 34
Posts: 119
Love the expert opinions...

I agree with the minority of posters, why can’t we cheer them on?

Compared with some of the other attempts at jet services in the past, Rex is probably quite likely to succeed.

“$30 million will only last a week”

”ozjet took $70 million to set up”

”that sort of money won’t buy much”

No where have they stated they’re buying anything.
Leasing aircraft will be much cheaper upfront.

Are you all forgetting Rex is a CURRENT airline? They’re not talking about starting something from scratch FFS! They already have everything they’ll probably need to fly between BNE/SYD/MEL and even ADL. All they’re doing is adding a new type. It’s an add-on to a current airline, not a whole new application.

Plus I don’t see anyone mention the feeder traffic from the regional services they currently have. This will probably fill 10% of the seats from day 1. Some of that traffic is currently fed to VA....

(Unfortunately) About to be a bunch of rated 737/320 crew with free time. Plus the expats from EK etc returning with Boeing/Airbus time....

They’ve even got room in Wagga for a 737/320 sim in the event this works out long term....

Other than all the negative comments on here, I don’t see any ‘actual’ reasons they couldn’t pull it off.
aviation_enthus is online now  
Old 29th Jun 2020, 16:30
  #44 (permalink)  
 
Join Date: Aug 2006
Location: The Cesspit
Posts: 296
Originally Posted by Turnleft080 View Post
Sharp said right at the end of the 4 corners program "their is definitely room for 2 managed airlines".
That didn't make sense. Unless he is counting on Virgin failing. Did anyone else pick that up.
Definitely would like to have been a fly on the wall when Senator Rex and Sharpy
were in the Wagga Wagga pub.
I think you’ll find he said something along the lines of “room for two well managed airlines”.

The inference was very clear. His view is Australia has only had one well managed airline for a considerable time and he’d like to change that.
Progress Wanchai is offline  
Old 29th Jun 2020, 18:26
  #45 (permalink)  
 
Join Date: Aug 2010
Location: Enzud
Posts: 11
Originally Posted by InZed View Post
I would be EXTREMELY surprised if Air New Zealand didn't step into this whole in the market. They have spare capital, spare aircraft, spare pilots and simulators for training - and they have been very public this year about their desire to extend their reach within the Australasian regional market.
What have you been smoking? At no point have they ever stated that they want to enter the Aus domestic market. I think in a livestream Greg said categorically it wouldn’t happen. Spare Capital??? Riiiight. They’re about to draw on the loan after burning through their reserves and you think they’ll plonk airbuses on the Aus domestic route with potentially 3 competitors....I think the focus right now is staying afloat.
captsf is offline  
Old 29th Jun 2020, 18:47
  #46 (permalink)  
 
Join Date: Mar 2015
Location: Oceania
Posts: 17
Originally Posted by InZed View Post
Who in Australasia has spare narrow body (A320s) and ATR72s right now (that isn't in administration)...

Qantas wouldn't get ACCC approval.
Virgin/Tiger obviously don't have the money.
Alliance could swoop in, but they are quite well placed to start up this venture without REX as a partner.

I would be EXTREMELY surprised if Air New Zealand didn't step into this whole in the market. They have spare capital, spare aircraft, spare pilots and simulators for training - and they have been very public this year about their desire to extend their reach within the Australasian regional market.
I agree it is within the realms of possibility but I doubt Greg has the appetite. I think you might be in for that surprise you mentioned.
oldm8ey is offline  
Old 30th Jun 2020, 02:12
  #47 (permalink)  
 
Join Date: May 2008
Location: Samsonite
Posts: 6
Taxpayer funded pi$$ing competition

I normally stay on the sidelines and watch with my bucket of popcorn, but this time I have to speak up.

So here we are with the media talking up the worst economic situation since the Great Depression. Yet, the government have just financed Rex to compete in a pi$$ing competition with Qantas and Virgin with taxpayer dollars.

Some families are battling out there you know. A whole lot of people are not on Jobkeeper.

Does anyone remember the Qantas response after 9/11 to Virgin Blue and Impulse? I do. They bought a whole lot of ex BA 767s and flew a whole bunch of the them on top of there existing fleet for years and stitched up two thirds or more of the SY-MEL-BN market in no time.

What will be QFs response this time on the SY-ML-BN routes, 787s, 747s, A380s, A330s? that's some fleet they can draw on-nothing going on with those aircraft types internationally right now. I haven't even talked about the Jetstar reponse.

So knock yourself out Rex. It's a free country. My taxpayer dollars already fund most of your routes, why not have a stab at SY-MEL-BN, it's on me. Enjoy ya little jet foray and after a few months when we have no jobkeeper or jobseeker you can ponder why no one is boarding your Saabs or jets, because perhaps there will be no money left in the piggy bank.
Turbine27 is offline  
Old 30th Jun 2020, 02:12
  #48 (permalink)  
 
Join Date: Jun 2001
Location: Boldly going where no split infinitive has gone before..
Posts: 4,325
Originally Posted by Turnleft080 View Post
Sharp said right at the end of the 4 corners program "their is definitely room for 2 managed airlines".
That didn't make sense. Unless he is counting on Virgin failing. Did anyone else pick that up.
Definitely would like to have been a fly on the wall when Senator Rex and Sharpy
were in the Wagga Wagga pub.
I think this is the point. If Virgin don't re-emerge, the first one to get operations going will be able to right size, right price and only have QF, which is carrying a huge burden of unused aircraft and pending redundancies, to compete with.

Compete against QF AND a trimmed down Virgin? Lunacy.

Remember, VB was hemorrhaging before the AN collapse- Branson might just have taken that cheque. AN exiting meant VB surviving.

VA surviving means Rex would not have a chance.


Wizofoz is offline  
Old 30th Jun 2020, 02:22
  #49 (permalink)  
34R
 
Join Date: Jul 2002
Location: Brisbane
Age: 49
Posts: 225
Sharp actually said "two WELL managed airlines"

Take that to mean what you want it to.....
34R is offline  
Old 30th Jun 2020, 04:01
  #50 (permalink)  
 
Join Date: May 2016
Location: Sunshine Coast
Posts: 139
Originally Posted by Wizofoz View Post
Remember, VB was hemorrhaging before the AN collapse-
Was it? For for the seven-month trading period to 31 March 2001 they had a small operating profit of about half a million on lightish turnover. Their first year result looked bad because they elected to write-down the entire $10+ million in start-up costs in one hit rather than amortising it. They weren't shooting the lights out but I wouldn't say that they were haemorrhaging.
MickG0105 is offline  
Old 30th Jun 2020, 04:10
  #51 (permalink)  
 
Join Date: Sep 2006
Location: Inside the Industry
Posts: 804
MickG0105

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.
Honestly, it would be hard to find an aircraft lessor to buy and leaseback 25-30 year old high time high cycle Saab 340s which are worth around $700k each.
industry insider is online now  
Old 30th Jun 2020, 04:53
  #52 (permalink)  
 
Join Date: Feb 2009
Location: in the stars... looking at the gutter.
Posts: 432
What if Rex knows the only chance of this operation succeeding is taking the 2nd airline position, not 3rd, and they're just preparing for the possibility of a future with no VA. Virgin has commitments to serve many more routes than the triangle, none of them as profitable. It is likely that the Queensland government's money is contingent on Virgin 2.0 serving many of the regional markets that Virgin 1.0 did, markets that just aren't as profitable as the triangle. Unless you have a monopoly.
Goat Whisperer is offline  
Old 30th Jun 2020, 05:37
  #53 (permalink)  
 
Join Date: May 2016
Location: Sunshine Coast
Posts: 139
Originally Posted by industry insider View Post
MickG0105
Honestly, it would be hard to find an aircraft lessor to buy and leaseback 25-30 year old high time high cycle Saab 340s which are worth around $700k each.
You would think so, wouldn't you? But in yesterday's ASX release Rex said that they had

​​​​​​... lessors willing to provide $AUD30 million for 15 of Rex's fleet of 60 unencumbered Saab 340 aircraft ...
​​​​​​​
The only way I can see that working is that if the lease-back is way above market or it's the same lessor that's going to provide them with their fleet of NBs and they're doing a little swings and roundabouts accounting.
MickG0105 is offline  
Old 30th Jun 2020, 06:55
  #54 (permalink)  
 
Join Date: Aug 2000
Location: International
Age: 72
Posts: 1,339
HaHa. REX has no interest in operating traditional Airbus or Boeing aircraft. Sim to be located in SYD and provided at no expense to REX.
B772 is offline  
Old 30th Jun 2020, 07:10
  #55 (permalink)  
 
Join Date: Jul 2007
Location: Australia
Age: 70
Posts: 1,356
Huh? what are they going to use then ??
Arnold E is offline  
Old 30th Jun 2020, 07:15
  #56 (permalink)  
 
Join Date: Mar 2011
Location: Asia
Posts: 14
They’ve been talking to Airbus so possibly A220-300
Tubman601 is offline  
Old 30th Jun 2020, 07:43
  #57 (permalink)  
 
Join Date: Sep 2005
Location: M.I.A.
Posts: 158
Originally Posted by Arnold E View Post
Huh? what are they going to use then ??
Or perhaps this?
Bug Smasher Smasher is online now  
Old 30th Jun 2020, 07:52
  #58 (permalink)  
 
Join Date: Oct 2016
Location: Melbourne
Posts: 110
An A220 has 3/2 seating config just like the DC-9/717 was in Europe 2 years ago was hoping to fly on one with Swiss
though got a mini A319. Air Baltic A220 came over for some demo flights late last year so I wonder that raised their eyebrows.ICF currently sees market values for the 2018 year of build A220-100 and -300 aircraft at $33.9 million and $36.7 million respectively and typical lease rates at $245,000 and $285,000 per month for new-build A220-100 and -300 aircraft.

Editor’s Note: The post was originally published in October 2018.

Last edited by Turnleft080; 30th Jun 2020 at 08:17.
Turnleft080 is offline  
Old 30th Jun 2020, 08:13
  #59 (permalink)  
 
Join Date: Aug 2000
Location: International
Age: 72
Posts: 1,339
Arnold E. The key word in my posting was traditional ......

Bug Smasher Smasher. The SpaceJet is too heavy and years away from certification.
B772 is offline  
Old 30th Jun 2020, 08:43
  #60 (permalink)  
 
Join Date: Jul 2013
Location: Australia
Posts: 193
Thumbs up

Originally Posted by Wingspar View Post
This is great news!
With the loss of irrational behaviour in the duopoly from VA and Qantas, someone had to pick up the baton.
Enter Rex.
QF alone will swamp the market with cheap seats.
VA will have to follow suit to keep market share.
More jobs for all!
Cheap flights to Canberra.
RickNRoll is online now  

Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.