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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 30th Jun 2020, 09:25
  #61 (permalink)  
 
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RexJet = EJet
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Old 30th Jun 2020, 10:01
  #62 (permalink)  
 
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MickG015

"​​​​​​... lessors willing to provide $AUD30 million for 15 of Rex's fleet of 60 unencumbered Saab 340 aircraft ..."

I think you may have stumbled across someone's cunning plan. If what someone else said is correct ( value 700k each) and they get financing for 30m, what's the likelihood that the financing is done via a tax haven and the inflated lease costs are sucking up a large slab of any profit tax free.
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Old 30th Jun 2020, 10:02
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Red face

er Yep to the jungle jet
!

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Old 30th Jun 2020, 11:12
  #64 (permalink)  
 
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Originally Posted by exfocx View Post
"​​​​​​... lessors willing to provide $AUD30 million for 15 of Rex's fleet of 60 unencumbered Saab 340 aircraft ..."

I think you may have stumbled across someone's cunning plan. If what someone else said is correct ( value 700k each) and they get financing for 30m, what's the likelihood that the financing is done via a tax haven and the inflated lease costs are sucking up a large slab of any profit tax free.
There is something decidedly odd going on there, let's just put it that way.
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Old 30th Jun 2020, 21:04
  #65 (permalink)  
 
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Originally Posted by MickG0105 View Post
There is something decidedly odd going on there, let's just put it that way.
There is nothing odd. To start with, stop mixing up Australian and US dollars. AUD 30m is just USD 20m. Second, Saab340B/B+ in serviceable condition depending of the engine status is valued in between 1,2 to 2,0m USD. Thirdly it is not that much Saab airplanes valued as collateral but rather a chance to loan to someone with a strong record (save for covid).
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Old 30th Jun 2020, 23:49
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Originally Posted by Tangan View Post
That inference reflects directly on Sharp’s own managerial “expertise”. He was employed in the Virgin group for 7years alongside Borghetti, until Scurrah got rid of him in May 2019. Initially he was CEO of Tiger and later a group executive, Chief Operating Officer,
Not too “Sharp” are you ?
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Old 1st Jul 2020, 00:05
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So Tangan, your saying that Mr Sharp has only been at REX for half a dog watch ??
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Old 1st Jul 2020, 00:21
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Originally Posted by Tangan View Post
That inference reflects directly on Sharp’s own managerial “expertise”. He was employed in the Virgin group for 7years alongside Borghetti, until Scurrah got rid of him in May 2019. Initially he was CEO of Tiger and later a group executive, Chief Operating Officer,
I think you’re getting your Sharps mixed up!
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Old 1st Jul 2020, 00:23
  #69 (permalink)  
 
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Originally Posted by Tangan View Post
That inference reflects directly on Sharp’s own managerial “expertise”. He was employed in the Virgin group for 7years alongside Borghetti, until Scurrah got rid of him in May 2019. Initially he was CEO of Tiger and later a group executive, Chief Operating Officer,
John Sharp has never worked for Virgin. He's a former politician - left politics in 1998, has been tied up with Rex as their Deputy Chair since 2005.
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Old 1st Jul 2020, 00:25
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That inference reflects directly on Sharp’s own managerial “expertise”. He was employed in the Virgin group for 7years alongside Borghetti, until Scurrah got rid of him in May 2019. Initially he was CEO of Tiger and later a group executive, Chief Operating Officer,
I think you’re getting your John’s and Rob’s mixed up!
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Old 1st Jul 2020, 00:41
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Yes, I did get my Sharps mixed up.
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Old 1st Jul 2020, 02:25
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Originally Posted by CargoOne View Post
There is nothing odd. To start with, stop mixing up Australian and US dollars. AUD 30m is just USD 20m. Second, Saab340B/B+ in serviceable condition depending of the engine status is valued in between 1,2 to 2,0m USD. Thirdly it is not that much Saab airplanes valued as collateral but rather a chance to loan to someone with a strong record (save for covid).


Can you provide some evidence for those values you quote. Mate flying regional jets reckons F100 / Bae are only worth around the 1m mark, so how does a 34 seater, which is around the same vintage come anywhere near the 2m USD mark?

Re the bolded sentence. It's a sell / lease back isn't it? So buy a/c with limited market demand and get their return via lease costs. You'd want a high return to justify the risk. The "lendee" then uses that money to enter a highly competitive RPT environment against established players; what could go wrong! I also think that the argument about the flow on from Rex's regional services is way overstated. Not saying it won't work, but it will be bloody difficult to pull off. I'd put my money on Bain & QF, not Rex. Not saying it will fold, just doubt it'll be that successful.
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Old 1st Jul 2020, 03:40
  #73 (permalink)  
 
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The Virgin ATR's?
Hevilift Australia - operate one or more, established operator, AOC, if time are quiet could always move one or more to PNG, where they are an experienced ATR operator, albeit different model.
Regional Express - would need to upgrade the AOC to high capacity or comply with new Reg coming in around December. Plenty of experienced flight crew to assist with T&C qualifications. Would need access to SIM
Qantas - Never, they have a very successful Dash 8 operation, don't need another type in the fleet 80 knots slower than a dash 8-400. Would need access to SIM
Sharp Airlines - possible contender, very astute businessman, could run a nice Adelaide, Mt Gambier, Portland, Warnambool, Melbourne, Canberra, Sydney scenario. Would need access to SIM
Pionair - too much on their hands with Kiribati E190, SIM required
New start up operator - Not likely, CASA has advised that the new Regs and December workload make this impossible before mid next year. Would need access to SIM

Not sure where the closest or most practical ATR Simulator is but Covid will make travel impossible unless in Australia.

..
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Old 1st Jul 2020, 05:09
  #74 (permalink)  
 
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https://www.aircraftcostcalculator.c...60/Saab+SF+340

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Old 1st Jul 2020, 06:38
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There's an ATR -600 sim in Brisbane.
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Old 1st Jul 2020, 07:53
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Originally Posted by Turbine27 View Post
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.
Er, the leased BA 767s all arrived in mid to late 2000.
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Old 1st Jul 2020, 09:16
  #77 (permalink)  
 
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REX/ATR MEMORANDUM OF UNDERSTANDING

Could be REX playing the marker, but ATR seem reasonably convinced.
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Old 1st Jul 2020, 09:22
  #78 (permalink)  
 
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Yeah nah! F100 / RJ85 (no RJ100 info) is 6.5m & 7.0m. So my guess is the 2 odd m quote for the saab is rubbish. You won't pay anywhere near the figures they quote for the f100 / RJ.
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Old 1st Jul 2020, 21:14
  #79 (permalink)  
 
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Originally Posted by exfocx View Post
Yeah nah! F100 / RJ85 (no RJ100 info) is 6.5m & 7.0m. So my guess is the 2 odd m quote for the saab is rubbish. You won't pay anywhere near the figures they quote for the f100 / RJ.
A quick search on controller.com should help you correlate your mates figures...

All in AUD:
$4-5 million for a Dash 8-100
$300,000 for a Jetstream 31
$1-1.2 million for a Jetstream 32
$1.6 million for a Jetstream 41
$950,000 AUD for a Metro III

So given the above, $2 million AUD for a SAAB seems reasonable to me. The bank has 60 to choose from, you can bet they didn’t pick the oldest airframes. They’ll have finance over the newest and lowest flight time examples.

Alliance got an amazing deal when they bought 21 Fokkers for $15 million USD. But I’d argue that was back when the Fokker wasn’t in such high demand. I’ll bet you couldn’t buy one today for anything like $1M....
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Old 2nd Jul 2020, 00:18
  #80 (permalink)  
 
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As someone who recently lost his job because of the CV-19 lockdowns, I for one are hoping Rex are successful.

In my search for opportunities I came across a website that said Sharp was a director and shareholder of Skytraders. Maybe Rex already has a lot of the issues sorted out given that Skytraders has an AOC with suitable aircraft type, crews and check and training, a maintenance base with approvals and engineers. (pretty impressive website) The money Rex are talking may just make sense if it is not a full startup.

Unfortunately I can't post the url as this is my first post although I have been a long time watcher.

Irrespective as an industry we are going to need lots of people/companies wanting to have a go to get it back on its feet particularly domestically here in NZ and in AUS.
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