REX to transition to ATRs, start domestic jet ops
The Australian is reporting that REX has announced to stock exchange that t now expects to lose$15M this year but bizarrely blames the loss on the latest Victorian lockdown. Seriously!!! The Victorian Government has a lot to answer for in its incompetent management of the Covid crisis but I don't think we should blame them for REX's disastrous management decisions.
The Australian is reporting that REX has announced to stock exchange that t now expects to lose$15M this year but bizarrely blames the loss on the latest Victorian lockdown. Seriously!!! The Victorian Government has a lot to answer for in its incompetent management of the Covid crisis but I don't think we should blame them for REX's disastrous management decisions.
Re: vic government. Wait until you find out about the feds incompetency
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The Australian is reporting that REX has announced to stock exchange that t now expects to lose$15M this year but bizarrely blames the loss on the latest Victorian lockdown. Seriously!!! The Victorian Government has a lot to answer for in its incompetent management of the Covid crisis but I don't think we should blame them for REX's disastrous management decisions.
The Australian is reporting that REX has announced to stock exchange that t now expects to lose$15M this year but bizarrely blames the loss on the latest Victorian lockdown. Seriously!!! The Victorian Government has a lot to answer for in its incompetent management of the Covid crisis but I don't think we should blame them for REX's disastrous management decisions.
That said, Rex's total cost base would probably only run to about $1.1 million a day when running at full tilt. Very difficult to reconcile what they've announced today with their break-even announcement less than a month ago.
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They've had fourteen days of lockdown impacted business to deal with and that has ostensibly cost them over a million dollars a day. Further proof, to the extent that it was required, that establishing jet ops routes that were 90 percent exposed to the unchallenged lock down capital of the country showed no signs of any risk management thinking.
That said, Rex's total cost base would probably only run to about $1.1 million a day when running at full tilt. Very difficult to reconcile what they've announced today with their break-even announcement less than a month ago.
That said, Rex's total cost base would probably only run to about $1.1 million a day when running at full tilt. Very difficult to reconcile what they've announced today with their break-even announcement less than a month ago.
Break even case will have been after the subsidies and a reversal of their profitable position before getting into the B737's. That could easily be all of a 70M or more turnaround from last year. Now it is a further 15M loss after just a few weeks of that release. It is almost the end of Financial Year and the full year reporting due in August I believe. The truth will come out very soon I suspect.
The thing that surprises me is that the press give air to all this without any analysis. Lets see what they do during reporting season.
Well they’re giving every indication they want the 737 op to keep going. ASX announcement acquired FFS to be maintained by Ansett in Brisbane with intent to be moved in 2 yrs to sydney.
https://australianaviation.com.au/20...d-15m-fy-loss/
Anyone know if the Sim is ex VA? I'm assuming that they probably have a surplus after the fleet reduction.
Anyone know if the Sim is ex VA? I'm assuming that they probably have a surplus after the fleet reduction.
Qantas announced yesterday that Alliance may increase their Embraer fleet to up to 18 aircraft to service thinner Qantas routes and Jetstar are adding an additional 3 aircraft from Singapore into the domestic market by the end of the year.
The Australian reported that the Qantas group domestic share dropped slightly from 70 to 68% while Virgin having ramped up capacity recently have gone from 24 to 28%.
Rex remained steady at 2%.
I wonder if Rex’s goal of capturing 38% of the domestic market still stands or will there be a rewrite of the ‘Operation Mother’ master plan?
Either way we’re long overdue for another Rex whinge on how unfair everything is.
The Australian reported that the Qantas group domestic share dropped slightly from 70 to 68% while Virgin having ramped up capacity recently have gone from 24 to 28%.
Rex remained steady at 2%.
I wonder if Rex’s goal of capturing 38% of the domestic market still stands or will there be a rewrite of the ‘Operation Mother’ master plan?
Either way we’re long overdue for another Rex whinge on how unfair everything is.
Last edited by Bull_Shark; 17th Jun 2021 at 22:53.
It's all a bit confusing. I take QF's 70% share as being the group's (inc JQ and QFLink) share of the total domestic scheduled market not just jet operations. In that case, I'd have thought REX's legacy prop services would've approached 2% of the market. Does anybody have an understanding of this data?
The Rex numbers shouldn’t really increase, actually I would expect them to go backwards later this year. You have Jetstar 5x78s, 9xA320 from Asia, debatable if they will even return. Virgin sending in another 10. QF increased widebody ops.
The biggest challenge for Rex has yet to come. In the next 12-24 months the NEO arrives at Jetstar. The MAX starts rolling in at Virgin.
Rex are about to get squeezed and it will only yet harder next year. Rex might have ten jets but the others will add that number alone in the space a of few months very soon. Lack of scale will kill them.
The biggest challenge for Rex has yet to come. In the next 12-24 months the NEO arrives at Jetstar. The MAX starts rolling in at Virgin.
Rex are about to get squeezed and it will only yet harder next year. Rex might have ten jets but the others will add that number alone in the space a of few months very soon. Lack of scale will kill them.
It's all a bit confusing. I take QF's 70% share as being the group's (inc JQ and QFLink) share of the total domestic scheduled market not just jet operations. In that case, I'd have thought REX's legacy prop services would've approached 2% of the market. Does anybody have an understanding of this data?
Pre-COVID, the market was around the 5 million passengers per month mark.
The ACCC Airline Competition series of quarterly reports only started in September last year. Over their reporting period the domestic travel market has gone from barely 1 million pax per month to around 2.7 million per month for March 2021; growth of more than 2.5 times but still only about half of what it was pre-pandemic. So, you need to temper those smallish quarterly changes in market share against the much bigger changes in the size of the market (it grew by over 20 percent from 2.2 million per month in December).
And of course, market share does not equate to profit.
Regarding the Rex numbers, you're correct, pre-pandemic with just their regional operations they had 2 percent of the total domestic market. For March they had about 4 percent of the total domestic market; that included 2 percent of the larger city–larger city market. The big caveat on interpreting that data is that it captures only the first month of Rex's jet ops when they were only flying one route; they only added OOL and ADL at the end of March.
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With the spill in the NP yesterday and the relationship between former leader McCormack and JS, favourable relationship, I imagine JS would have sent a letter to Barnaby’s office congratulating him on his position as party leader to continue the political relationship with Rex...
Does anyone think the change of leadership away from Wagga member and Rex Country HQ will have any effect????
Does anyone think the change of leadership away from Wagga member and Rex Country HQ will have any effect????
With the spill in the NP yesterday and the relationship between former leader McCormack and JS, favourable relationship, I imagine JS would have sent a letter to Barnaby’s office congratulating him on his position as party leader to continue the political relationship with Rex...
Does anyone think the change of leadership away from Wagga member and Rex Country HQ will have any effect????
Does anyone think the change of leadership away from Wagga member and Rex Country HQ will have any effect????