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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 28th Jun 2021, 10:25
  #1281 (permalink)  
 
Join Date: Jul 2014
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Originally Posted by SHVC View Post
To be honest, REX may be the last Airline standing who knows! one thing is for sure QF will be loosing money like they haven't before, we will know in August, how long can QF pay for a idle international business. As for VA far out I wouldn't leave REX to go back I don't think they will survive Bain don't seem like the company to keep tipping in money in a business thats based in a country that is backwards and third world. Would Rex accept a 320 rated pilot?!.

Like I have posted before, you're kidding yourself if you think you're flying Internationally by 2023.
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Old 28th Jun 2021, 10:38
  #1282 (permalink)  
 
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Originally Posted by shvc;[url=tel:11069605
11069605]to be honest, rex may be the last airline standing
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Old 28th Jun 2021, 10:40
  #1283 (permalink)  
 
Join Date: Aug 2006
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Tell us SHVC, how many shares in REX do you have, and are you going to hold them for the long run.........
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Old 29th Jun 2021, 03:47
  #1284 (permalink)  
ebt
 
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Originally Posted by SHVC View Post
To be honest, REX may be the last Airline standing who knows! one thing is for sure QF will be loosing money like they haven't before, we will know in August, how long can QF pay for a idle international business. As for VA far out I wouldn't leave REX to go back I don't think they will survive Bain don't seem like the company to keep tipping in money in a business thats based in a country that is backwards and third world. Would Rex accept a 320 rated pilot?!.

Like I have posted before, you're kidding yourself if you think you're flying Internationally by 2023.
But remember that the Federal Government is still paying to keep the international business hibernated - how much, we will likely never know, but QF isn't carrying the can for all of that anyway. There are still many pilots and cabin crew stood down from that operation, so the cash burn cannot be horrendous. In any case, QF has been thriving domestically even with the turbulence caused by the flare ups, lockdowns and the like.

Bain know what they are buying into with VIrgin, and they have picked it up for a song, stripped out layers of management, renegotiated major contracts and have the airline on a footing more akin to Virgin Blue days. As for this "backwards and third world", that is why they bought into Virign in the first place - surivive Covid, get the airline back to its roots and the market is a license to print money.

Rex's issue is that they are going to bleed more cash than they planned with a subscale fleet, a network that is small and without the sort of brand that the other two have. The lockdowns were not a part of their plans, especially with most of the 737s based in MEL, so they will have to get a bit creative to raise some cash before they burn through PAG's swag. I would think that unlike a Bain, PAG may have less of a stomach to pump more cash into Rex if it is needed, and I don't think Kim Hai has the means to do so either.
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Old 29th Jun 2021, 05:14
  #1285 (permalink)  
 
Join Date: Jan 2017
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Rex adds two more Boeing 737 jets as it eyes new routes https://www.executivetraveller.com/n...yes-new-routes

The two additional leased 737s bring the Rex fleet to eight, Sharp says two more due by end of this year.
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Old 29th Jun 2021, 05:32
  #1286 (permalink)  
 
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Originally Posted by MelbourneFlyer View Post
Rex adds two more Boeing 737 jets as it eyes new routes https://www.executivetraveller.com/n...yes-new-routes

The two additional leased 737s bring the Rex fleet to eight, Sharp says two more due by end of this year.
I think from memory these were already agreed upon and have to be taken up.
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Old 1st Jul 2021, 08:08
  #1287 (permalink)  
 
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They are power by the hour…….Don’t cost much sitting around and no fuel bill either…….Can QF say the same?
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Old 1st Jul 2021, 10:54
  #1288 (permalink)  
 
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Originally Posted by ACMS View Post
They are power by the hour…….Don’t cost much sitting around and no fuel bill either…….Can QF say the same?

Well yes as they own quite a number of aircraft outright...what about the Hard-Licker mob?
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Old 1st Jul 2021, 12:57
  #1289 (permalink)  
 
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The hard liquor mob own half their machines and have power by the hour on the other half......can QF say the same. They may own half their machines but the other half have HUGE lease payments........
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Old 1st Jul 2021, 21:49
  #1290 (permalink)  
 
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[QUOTE=can QF say the same. They may own half their machines but the other half have HUGE lease payments........[/QUOTE]

The lease repayments on the four 737s might be huge, I don’t know. The other 71 are owned and have been for a long time.
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Old 1st Jul 2021, 21:52
  #1291 (permalink)  
 
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The other crippling disadvantage that Qantas has is too many customers stinking the place up. So then they have to employ more people to serve them. Its a mug's game that Rex has cunningly avoided.
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Old 1st Jul 2021, 23:21
  #1292 (permalink)  
 
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Thanks Crosscutter, I didn’t know that QF owned their domestic fleet. But what about the wide bodies, and the upcoming (later this year?) Neo payments.
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Old 1st Jul 2021, 23:37
  #1293 (permalink)  
 
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There seems to be a perception in some quarters that power-by-the-hour leases are some sort of financial panacea for low utilisation. They're not. PBH is typically a 'tuned' arrangement pitched around forecast utilisation with a cap-and-collar for anticipated variations. They blend the relatively high fixed lease component that covers the return-on-capital to the leasing company with a much smaller utilisation-based pro-rated component for (usually engine) maintenance.

Not using the aircraft doesn't obviate the requirement to make the bulk of the lease payments. However, not utilising the aircraft does have a major impact on the airlines' ability to fund the lease costs from cash flow.

There's a reason why there are a couple of orders of magnitude fewer leasing companies than airlines and at least an order of magnitude fewer leasing companies going bust when compared to airlines. They are much better at making money under any and all circumstances.

Last edited by MickG0105; 1st Jul 2021 at 23:38. Reason: Typo
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Old 1st Jul 2021, 23:39
  #1294 (permalink)  
 
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Originally Posted by No Idea Either View Post
Thanks Crosscutter, I didn’t know that QF owned their domestic fleet. But what about the wide bodies, and the upcoming (later this year?) Neo payments.
Numbers of aircraft owned are not so important as the finance figures, ie Value of aircraft assets $610M, aircraft lease liability $830M
Source 2020 Annual report (which was when COVID only affected 1/4 of the year)
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Old 2nd Jul 2021, 00:15
  #1295 (permalink)  
 
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Where is Rex building their simulator center in Sydney?
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Old 2nd Jul 2021, 01:19
  #1296 (permalink)  
ebt
 
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Originally Posted by No Idea Either View Post
Thanks Crosscutter, I didn’t know that QF owned their domestic fleet. But what about the wide bodies, and the upcoming (later this year?) Neo payments.
Most of the 787s are owned although a couple were sold and leased back with BOC Aviation at the start of the pandemic to bring in some cash. The A380s are owned too and no bank/lessor in their right mind would touch them now, but as they are subject to large writefdowns, their ownership costs will reduce dramatically in coming years. A330s are all owned, the few that were leased from CIT (now Avolon) were returned some years ago.

As for the neos, from memory they were out in the market looking at some SLB options a while back, and as they are an in-demand asset the lessors will still put some attractive deals together. My guess is that in most cases Qantas has paid the pre-delivery payments in cash and could therefore get some value from doing SLBs if they needed to, but there are also benefits to having new jets on the balance sheet. If there are concerns about new jets sucking too much cash out they will defer their later deliveries and just rely on SLBs or finance leases to take those that they are contractually obliged to take.
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Old 2nd Jul 2021, 03:55
  #1297 (permalink)  
 
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Originally Posted by turbantime View Post
Where is Rex building their simulator center in Sydney?
Branksome hotel owned by Kim Jong Un.
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Old 2nd Jul 2021, 03:56
  #1298 (permalink)  
 
Join Date: Apr 2010
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Originally Posted by ebt View Post
A330s are all owned, the few that were leased from CIT (now Avolon) were returned some years ago.
Four are still leased ie VH-EBS
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Old 2nd Jul 2021, 04:37
  #1299 (permalink)  
 
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SHVC

To be honest, REX may be the last Airline standing who knows! one thing is for sure QF will be loosing money like they haven't before, we will know in August, how long can QF pay for a idle international business. As for VA far out I wouldn't leave REX to go back I don't think they will survive Bain don't seem like the company to keep tipping in money in a business thats based in a country that is backwards and third world.
Bain owns other aviation businesses with an Australian component and which also lose money in Australia and globally. Far from wanting out, Bain is both "tipping in money" and undertaking acquisitions to gain more market share.
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Old 2nd Jul 2021, 09:31
  #1300 (permalink)  
 
Join Date: Sep 2019
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Originally Posted by ebt View Post
Most of the 787s are owned although a couple were sold and leased back with BOC Aviation at the start of the pandemic to bring in some cash. The A380s are owned too and no bank/lessor in their right mind would touch them now, but as they are subject to large writefdowns, their ownership costs will reduce dramatically in coming years. A330s are all owned, the few that were leased from CIT (now Avolon) were returned some years ago.

As for the neos, from memory they were out in the market looking at some SLB options a while back, and as they are an in-demand asset the lessors will still put some attractive deals together. My guess is that in most cases Qantas has paid the pre-delivery payments in cash and could therefore get some value from doing SLBs if they needed to, but there are also benefits to having new jets on the balance sheet. If there are concerns about new jets sucking too much cash out they will defer their later deliveries and just rely on SLBs or finance leases to take those that they are contractually obliged to take.
The Qantas 787s were not sold. 8 of the 11 active QF 787s were actually encumbered/mortgaged with the banks, same arrangement that SQ/EY/Borghetti did with VA's 4x 77Ws and the entire 'owned' VA 737 fleet.

https://www.flightglobal.com/strateg...137514.article
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