REX to transition to ATRs, start domestic jet ops
They are going too hard too fast. Virgin and Jetstar don’t even have 10 a day each way at the moment.
Really should have launched around July School Holidays considering recent events.
They will end up just consolidating flights until demand picks up. That’s what Tiger used to do. Rex is about to go through the start up phase which takes 6-12 months for people to even realize they are an option. The other three will go out full every single day regardless. Tiger was 4 a day for 6 months before they made the decision to move to 10. One of the few logical decisions they actually made.
Really should have launched around July School Holidays considering recent events.
They will end up just consolidating flights until demand picks up. That’s what Tiger used to do. Rex is about to go through the start up phase which takes 6-12 months for people to even realize they are an option. The other three will go out full every single day regardless. Tiger was 4 a day for 6 months before they made the decision to move to 10. One of the few logical decisions they actually made.
WL never performs well when competition heats up.
Last edited by On eyre; 10th Feb 2021 at 03:03.
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It appears that VA wants to sink this as such as Qantas wanted to sink Tiger back in 2007.
Bain has matched the $49.
Going to be a long tough slog for Rex. Alan wasn’t convinced in the whole operation and does not appear to be interested in playing along, looks like Jayne wants the trophy for killing it off. What a career accomplishment that would be.
Bain has matched the $49.
Going to be a long tough slog for Rex. Alan wasn’t convinced in the whole operation and does not appear to be interested in playing along, looks like Jayne wants the trophy for killing it off. What a career accomplishment that would be.
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PAG have given 150mil and Rex have just received the first 50mil instalment. I take it it's not free money. They want some sort of return.
Just like Bain. $49 bucks would send shivers through the PAG management. If I gave 150mil I would be worried. Gutsy move Mav.
Just like Bain. $49 bucks would send shivers through the PAG management. If I gave 150mil I would be worried. Gutsy move Mav.
That Today Show plug would have been a paid spot, so can say whatever the hell he wants without Karl questioning the whole deal.
I assume 9 may have done a deal across its platforms. They were also interviewed on 3AW Breakfast which has been followed up with a number of ads as well as tweets from 3AW about what a good deal Rex is offering.
Does Rex even stand a chance here, they're kidding themself they will go broke in no time starting a capacity war.
Jetstar is undercutting Rex and Virgin Australia on Melbourne-Sydney, which has suddenly become the cheapest air route in the country. Picture: Bianca De Marchi/NCA NewsWireAustralia’s busiest air route of Melbourne to Sydney will also become the cheapest as an airfare war rages ahead of the launch of Rex’s new services next month.
Days after Rex cut prices to $49 a seat one way, including baggage and refreshments, Jetstar has slashed its $105 fare on the route to $29.
The bargain fare will be offered for eight hours from midday on Friday for flights in late February to April, as part of a “fare frenzy sale”.
Beyond that, Jetstar will sell one-way fares on the route from $39.
Virgin Australia has also weighed into the price war, matching Rex’s $49 fare for flights in March only booked by the end of February.
In another blow to newcomer Rex, Jetstar will increase frequency on the route, with plans to operate 88 return services a week between Melbourne and Sydney by the end of March.
Rex has scheduled nine return flights a day, or 63 a week, as the regional carrier attempts to carve out a place in the competitive capital city market.
Jetstar has also cut fares on other routes for its eight-hour sale, with Brisbane to Cairns costing $79, Adelaide to Hobart $84 and Melbourne to Uluru from $89 one way.
A statement from Jetstar said the carrier was committed to always offering the lowest fares.
“If customers find a fare that is cheaper than the fare listed on Jetstar.com, Jetstar will beat it by 10 per cent,” the statement said.
Airline executives have acknowledged that cheaper fares will be needed for some time to reinvigorate demand for air travel, devastated by the COVID-19 pandemic and border closures.
The latest domestic airfare index, compiled by the Bureau of Infrastructure, Transport and Regional Economics, showed discount prices were already at their lowest level in more than a year.
There were even greater savings to be made in business class, however, where fares were at an eight-year low of about two-thirds of normal prices.
Rex flights in Boeing 737 aircraft begin on March 1, providing state borders remain open.
The airline’s deputy chairman, John Sharp, has warned that there will be “no point” to operating services on the route if travellers are restricted in any way. In the event flights are cancelled due to COVID-19, full refunds will be available to passengers.
Virgin Australia and Qantas are both offering passengers the option of changing flight times for free, right through to January next year.
Airfare war ramps up on busiest route as Jetstar latest to slash fares
Jetstar is undercutting Rex and Virgin Australia on Melbourne-Sydney, which has suddenly become the cheapest air route in the country. Picture: Bianca De Marchi/NCA NewsWireAustralia’s busiest air route of Melbourne to Sydney will also become the cheapest as an airfare war rages ahead of the launch of Rex’s new services next month.Days after Rex cut prices to $49 a seat one way, including baggage and refreshments, Jetstar has slashed its $105 fare on the route to $29.
The bargain fare will be offered for eight hours from midday on Friday for flights in late February to April, as part of a “fare frenzy sale”.
Beyond that, Jetstar will sell one-way fares on the route from $39.
Virgin Australia has also weighed into the price war, matching Rex’s $49 fare for flights in March only booked by the end of February.
In another blow to newcomer Rex, Jetstar will increase frequency on the route, with plans to operate 88 return services a week between Melbourne and Sydney by the end of March.
Rex has scheduled nine return flights a day, or 63 a week, as the regional carrier attempts to carve out a place in the competitive capital city market.
Jetstar has also cut fares on other routes for its eight-hour sale, with Brisbane to Cairns costing $79, Adelaide to Hobart $84 and Melbourne to Uluru from $89 one way.
A statement from Jetstar said the carrier was committed to always offering the lowest fares.
“If customers find a fare that is cheaper than the fare listed on Jetstar.com, Jetstar will beat it by 10 per cent,” the statement said.
Airline executives have acknowledged that cheaper fares will be needed for some time to reinvigorate demand for air travel, devastated by the COVID-19 pandemic and border closures.
The latest domestic airfare index, compiled by the Bureau of Infrastructure, Transport and Regional Economics, showed discount prices were already at their lowest level in more than a year.
There were even greater savings to be made in business class, however, where fares were at an eight-year low of about two-thirds of normal prices.
Rex flights in Boeing 737 aircraft begin on March 1, providing state borders remain open.
The airline’s deputy chairman, John Sharp, has warned that there will be “no point” to operating services on the route if travellers are restricted in any way. In the event flights are cancelled due to COVID-19, full refunds will be available to passengers.
Virgin Australia and Qantas are both offering passengers the option of changing flight times for free, right through to January next year.
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Standing by for the REX CEO to start sooking in the media about unlevel playing fields and the usual BS that he moans about every time he is outsmarted or his flawed strategies fall apart....
Would I be correct in saying that despite numerous attempts by people who were "in the know" and "going to do it differently", a third rpt airline has never lasted more than 12 months in Australia?
WL cannot handle competition no matter what JS says.
With recent announcements in Victoria I’m sure all consumer confidence to travel to Victoria is killed untill a vaccine roll out is all most complete. Rex selling $49 seats flying 6 or so returns a day with maybe 30 punters I give them weeks not 6 months.
Would I be correct in saying that despite numerous attempts by people who were "in the know" and "going to do it differently", a third rpt airline has never lasted more than 12 months in Australia?
- Air North operated scheduled services from 1981
- Alliance has operated since 2002, and scheduled services since 2020
- Eastern Australian Airlines operated since 1949
- Fly Pelican operated since 2015
- Jetstar operated since 2004
- Qantas domestic operated since 1992 after it merged with TAA
- REX operated since 2002
- Skytrans relaunched in 2015
- Sunstate operated since 1986
- Tigerair Australia 2007 till 2020
- Virgin operated 2000 till 2020 when relaunched
- VARA operated 2002 till 2020.
No, I don't think so, because:
- Air North scheduled services from 1981
- Alliance has operated since 2002, and scheduled services since 2020
- Eastern Australian Airlines since 1949
- Fly Pelican since 2015
- Jetstar since 2004
- Qantas domestic since 1992 after it merged with TAA
- REX since 2002
- Skytrans relaunched in 2015
- Sunstate since 1986
- Tigerair Australia 2007 till 2020
- Virgin 2000 till 2020 when relaunched
- VARA 2002 till 2020
REX was a rebranded Kendall/Hazelton and only did regional Regional is a different ballgame and often supported by government subsidies or monopolies.
I know the planes and crew are cheap. I know the slots are there. But you need customers!
1A_Please....
Fair enough, but that's not actually what ADBF said.
Jetstar was a relaunch of Impulse Airlines which operated in its own right from 1992 - 2001. And while Jetstar Airways in Australia and New Zealand is wholly owned by the Qantas Group, it's a separate entity under its own right with respect to the Civil Aviation Act.
REX may be a rebranded Kendall/Hazelton, and only till this point have operated regional routes, but it's still an RPT airline that's lasted more than 12 months.
OZJET operated from 2005 till 2008, so was in operation for more that 12 months.
And Compass MK 1 actually survived for a little over 12 months (Compass Mk II didn't though).
Finally, you missed Tigerair...it commenced in 2007 as Tiger Airways and wasn't taken over by Virgin till 2013 when it became Tigerair. So it also operated for more than 12 months.
I know what you were trying to get at though, so all good!
I think he was talking about mainline routes where the only new entrant that has survived is Virgin
Jetstar was a relaunch of Impulse Airlines which operated in its own right from 1992 - 2001. And while Jetstar Airways in Australia and New Zealand is wholly owned by the Qantas Group, it's a separate entity under its own right with respect to the Civil Aviation Act.
REX may be a rebranded Kendall/Hazelton, and only till this point have operated regional routes, but it's still an RPT airline that's lasted more than 12 months.
OZJET operated from 2005 till 2008, so was in operation for more that 12 months.
And Compass MK 1 actually survived for a little over 12 months (Compass Mk II didn't though).
Finally, you missed Tigerair...it commenced in 2007 as Tiger Airways and wasn't taken over by Virgin till 2013 when it became Tigerair. So it also operated for more than 12 months.
I know what you were trying to get at though, so all good!
Last edited by SIUYA; 12th Feb 2021 at 05:59.
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With recent announcements in Victoria I’m sure all consumer confidence to travel to Victoria is killed until a vaccine roll out is all most complete.
Standing by for the REX CEO to start sooking in the media about unlevel playing fields and the usual BS that he moans about every time he is outsmarted or his flawed strategies fall apart....