REX to transition to ATRs, start domestic jet ops
Looks like they are taking another Tiger Route. MEL/CBR Jet Ops twice a day from next month.
Minigun......in my book, it makes you a heartless moron.
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Rex to start CBR-MEL B737 flights (not CBR-SYD Saabs) from June 10: https://www.executivetraveller.com/n...nberra-flights
Last edited by MelbourneFlyer; 17th May 2021 at 23:19.
Rex to start CBR-MEL B747 flights (not CBR-SYD Saabs) from June 10: https://www.executivetraveller.com/n...nberra-flights
Rex to start CBR-MEL B747 flights (not CBR-SYD Saabs) from June 10: https://www.executivetraveller.com/n...nberra-flights
Seems like Rex has more jets than good ideas currently.
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I think the Rex strategy is to see which airports and tourism bodies will throw them the most money, and open routes to suit! But at the rate they're going launching into new routes with cut-rate fares and not seeing the sort of high passenger loads you'd want to be profitable, I have to wonder if Rex is going to be in this jet game by the end of the year, or even if it will just have cut back to a handful of triangle routes providing connections for its regional customers.
I imagine that it would be very remiss, even a ‘corporate crime’ to have the two operations exposed to each other so I had assumed they were siloed. But since PAG is investing in the jets but converting their investment into general Rex shares, if the jets fall over and PAG takes a 42% (?) interest, diluting the shares in the process, how does this stand with the business and the Aussie shareholders......I guess they don’t get a say in the matter as the company is majority foreign owned.
I imagine that it would be very remiss, even a ‘corporate crime’ to have the two operations exposed to each other so I had assumed they were siloed. But since PAG is investing in the jets but converting their investment into general Rex shares, if the jets fall over and PAG takes a 42% (?) interest, diluting the shares in the process, how does this stand with the business and the Aussie shareholders......I guess they don’t get a say in the matter as the company is majority foreign owned.
Can I ask how they accomplished this separation? The jet ops are being flown under the same AOC as the Saab ops, aren't they? That AOC is held by Regional Express Pty Limited (ACN 101 325 642). Regional Express Pty Limited is also the registered operator for both the Boeings and the Saabs.
They may have separate operational staff and cost centres but from both the regulatory and financial perspectives both the jets and the Saabs sit under Regional Express Pty Ltd, the wholly owned subsidiary of Regional Express Holdings Limited (ACN 099 547 270). Regional Express Holdings Limited is the ASX-registered traded entity. Regional Express Pty Limited and Regional Express Pty Limited are bound by both ownership and deeds of cross guarantee.
Where's the separation?
They may have separate operational staff and cost centres but from both the regulatory and financial perspectives both the jets and the Saabs sit under Regional Express Pty Ltd, the wholly owned subsidiary of Regional Express Holdings Limited (ACN 099 547 270). Regional Express Holdings Limited is the ASX-registered traded entity. Regional Express Pty Limited and Regional Express Pty Limited are bound by both ownership and deeds of cross guarantee.
Where's the separation?
Same as Qantas and Jetconnect or Jetstar and Jetstar NZ, technically both of these companies are crewing Companies that supply Pilots, Cabin Crew and RPT services to Qantas and Jetstar, Qantas and Jetstar ‘Lease’ the aircraft and trading facilities to these entities so that Jetconnect and Jetstar NZ use the AOC’s and Regulatory structure of the Clients. If Jetconnect or Jetstar NZ went bust then that operation would be wrapped up as a seperate entity and the ‘leasing’ ceases meaning that Qantas and Jetstar OZ have no liabilities from the bankruptcy.
Same as Qantas and Jetconnect or Jetstar and Jetstar NZ, technically both of these companies are crewing Companies that supply Pilots, Cabin Crew and RPT services to Qantas and Jetstar, Qantas and Jetstar ‘Lease’ the aircraft and trading facilities to these entities so that Jetconnect and Jetstar NZ use the AOC’s and Regulatory structure of the Clients. If Jetconnect or Jetstar NZ went bust then that operation would be wrapped up as a seperate entity and the ‘leasing’ ceases meaning that Qantas and Jetstar OZ have no liabilities from the bankruptcy.
JS's stuff-up will take lots of $39 seats to pay off
Rex Airlines has been slugged $66,000 after its deputy chairman told members of the media of its plans to expand domestic flights before updating the market.
Corporate regulator ASIC fined Rex after it revealed in an interview with the Australian Financial Review its plans to expand routes as part of a major expansion of its domestic operations.
In the interview in May 2020, deputy chairman John Sharp told AFR journalist Tony Boyd of the airline’s plans to invest $200m to start new capital city services.
“The preliminary estimate of equity required is in the vicinity of $200m and the structure of equity raising is yet to be determined,” it said.
Rex deputy chairman John Sharp’s interview caused the problem. Picture: Jerad Williams Following the announcement Rex opened at $1.26, before rising to a high of $1.31 and closing at $1.19, a 32 per cent jump on its closing price the previous trading day.
The $66,000 fine was based on the market capitalisation when the conduct occurred.
ASIC said it found Regional Express Holdings had failed to comply with its continuous disclosure obligations after the interview.
“Following the release of the article on May 12, 2020, ASX contacted Rex about the article and Rex was placed in a trading halt,” ASIC said.
“Later that day, Rex disclosed to ASX that it was considering the feasibility of commencing domestic operations.”
ASIC found there were reasonable grounds to conclude that Rex was in breach by failing to inform the ASX “that it was considering the feasibility of commencing domestic operations in addition to its regional operations”.
But Rex executive chairman Lim Kim Hai maintained its position that “it did comply” with its obligations to inform the market.
“Be that as it may, Rex has elected to comply with the infringement notice and pay the penalty of $66,000 on a no-admission basis,” the airline said in a market update.
The ASIC fine hit follows a move by the regulator to restrict Rex from issuing a reduced content prospectus and using exemptions for reduced disclosure in fundraising documents until December 14, 2021.
Corporate regulator ASIC fined Rex after it revealed in an interview with the Australian Financial Review its plans to expand routes as part of a major expansion of its domestic operations.
In the interview in May 2020, deputy chairman John Sharp told AFR journalist Tony Boyd of the airline’s plans to invest $200m to start new capital city services.
Following the publication of the interview Rex was placed in a trading halt.
In its market update Rex revealed it had been approached by several parties “interested in providing the equity needed for Rex to start domestic operations in Australia”.“The preliminary estimate of equity required is in the vicinity of $200m and the structure of equity raising is yet to be determined,” it said.
Rex deputy chairman John Sharp’s interview caused the problem. Picture: Jerad Williams Following the announcement Rex opened at $1.26, before rising to a high of $1.31 and closing at $1.19, a 32 per cent jump on its closing price the previous trading day.
The $66,000 fine was based on the market capitalisation when the conduct occurred.
ASIC said it found Regional Express Holdings had failed to comply with its continuous disclosure obligations after the interview.
“Following the release of the article on May 12, 2020, ASX contacted Rex about the article and Rex was placed in a trading halt,” ASIC said.
“Later that day, Rex disclosed to ASX that it was considering the feasibility of commencing domestic operations.”
ASIC found there were reasonable grounds to conclude that Rex was in breach by failing to inform the ASX “that it was considering the feasibility of commencing domestic operations in addition to its regional operations”.
But Rex executive chairman Lim Kim Hai maintained its position that “it did comply” with its obligations to inform the market.
“Be that as it may, Rex has elected to comply with the infringement notice and pay the penalty of $66,000 on a no-admission basis,” the airline said in a market update.
The ASIC fine hit follows a move by the regulator to restrict Rex from issuing a reduced content prospectus and using exemptions for reduced disclosure in fundraising documents until December 14, 2021.
Same as Qantas and Jetconnect or Jetstar and Jetstar NZ, technically both of these companies are crewing Companies that supply Pilots, Cabin Crew and RPT services to Qantas and Jetstar, Qantas and Jetstar ‘Lease’ the aircraft and trading facilities to these entities so that Jetconnect and Jetstar NZ use the AOC’s and Regulatory structure of the Clients. If Jetconnect or Jetstar NZ went bust then that operation would be wrapped up as a seperate entity and the ‘leasing’ ceases meaning that Qantas and Jetstar OZ have no liabilities from the bankruptcy.
That is a very different structure and arrangement to how Rex's domestic operations are set up.
I personally have no idea about anything corporate, but wouldn’t this ‘cross guarantee’ deed be the vehicle for PAG to take the part ownership of the parent company. But it sounds risky as it appears, how I see it, that’s this deed/vehicle may also leave the entire show open to all the debt...........risky business if that’s correct.