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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 1st Jul 2021, 08:08
  #1281 (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
  #1282 (permalink)  
 
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Originally Posted by ACMS
They are power by the hourÖÖ.Donít cost much sitting around and no fuel bill eitherÖÖ.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
  #1283 (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
  #1284 (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 donít know. The other 71 are owned and have been for a long time.
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Old 1st Jul 2021, 21:52
  #1285 (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
  #1286 (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
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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
  #1288 (permalink)  
 
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Originally Posted by No Idea Either
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
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Where is Rex building their simulator center in Sydney?
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Old 2nd Jul 2021, 01:19
  #1290 (permalink)  
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Originally Posted by No Idea Either
Thanks Crosscutter, I didnít 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
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Originally Posted by turbantime
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
  #1292 (permalink)  
 
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Originally Posted by ebt
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
  #1293 (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
  #1294 (permalink)  
 
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Originally Posted by ebt
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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Old 2nd Jul 2021, 09:51
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Thanks ebt and DanV2 for setting the record straight....
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Old 3rd Jul 2021, 02:26
  #1296 (permalink)  
 
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Originally Posted by industry insider
SHVC



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.
After investing more than $3B in VA, Bain certainly arenít about bug out due to the competition.

War of attrition methinks?
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Old 3rd Jul 2021, 04:53
  #1297 (permalink)  
 
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Originally Posted by KRUSTY 34
After investing more than $3B in VA, Bain certainly arenít about bug out due to the competition.

War of attrition methinks?
The attrition is current pay and conditions, with Miss Jayne wanting the pilots to take a 27% paycut.............
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Old 3rd Jul 2021, 06:57
  #1298 (permalink)  
 
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Yeah "wanting" and "getting" two different things though. Essentially they want a lower base salary with a lower overtime trigger. The devil, as always, is in the details. The details in the offer last December, in a word "sucked". Thus a 90% no vote. Negotiations have resumed.
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Old 3rd Jul 2021, 09:54
  #1299 (permalink)  
 
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Anyone know what's going on with REX 737 recruitment?

Last edited by stevieboy330; 9th Oct 2022 at 08:23.
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Old 4th Jul 2021, 01:15
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Why would anybody want to become a pilot these days when you can earn more money in unqualified jobs or as a tradesman without the associated stress? Management would want to watch this march to the bottom on conditions because otherwise they will only be able to recruit people who aren't suitable because the smart ones are pursuing careers elsewhere or there won't be anybody to choose from.
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