REX to transition to ATRs, start domestic jet ops
Just did a SYD-BNE sector with these guys. There's certainly nothing wrong with the product. $109 one way inclusive of 23KG of checked luggage, on time, clean aircraft, nice crew- I'd estimate 60% full on a Sunday mid-afternoon.
Hope they stick around.
Hope they stick around.
6 months ago he said he was expanding from 6 to 14 aircraft. It does not appear they are even using all 6 at the moment. The loads looked pretty **** across half the network today so perhaps getting cold feet re fuel prices.
There needs to be a commission into how much taxpayer money was thrown at Rex during COVID, which seemed disproportionate and was followed by an announcement of a major expansion.
Obviously some airlines are more equal, especially if they have a disgraced politician at the helm.
Obviously some airlines are more equal, especially if they have a disgraced politician at the helm.
Does that $2B include the fixed costs associated with operations in Australian airspace, among other things, that were waived as there were almost no operations in Australian airspace?
You mean like this:
The Australian Government's Regional Airline Network Support (RANS) program supports airlines to maintain a basic level of connectivity across their network of regional routes throughout the travel downturn.
Running since the end of March 2020, RANS underwrites eligible services on a shortfall subsidy basis, with the cost offset by remaining commercial revenue from passengers and freight. RANS has proved lucrative for Rex. In the six months to December 31, Rex picked up almost US$46 million in government funding.
It is a lot of funding for a relatively small airline. In February, Qantas boss Alan Joyce said that Rex had received proportionally seven times the government funding Qantas got.
Running since the end of March 2020, RANS underwrites eligible services on a shortfall subsidy basis, with the cost offset by remaining commercial revenue from passengers and freight. RANS has proved lucrative for Rex. In the six months to December 31, Rex picked up almost US$46 million in government funding.
It is a lot of funding for a relatively small airline. In February, Qantas boss Alan Joyce said that Rex had received proportionally seven times the government funding Qantas got.
Yup disproportionate…when I ran coaster numbers a while back, Rex received annual government support which represented 20% of their pre covid revenue. That’s revenue!!! I’ve no idea how they did it, but it explains why they made a profit when others didn’t. Of course, reality has returned…so yesterdays news I guess.
It works out to be roughly $250000 per employee during covid, while said employees lived below the poverty line on Jobkeeper.
Not sure where you get that figure from, they have around 1100 employees, so that means you are saying the gov has thrown $270 odd million at them? Thats double what most sources are saying.
C'mon, 43. You know the number of employees is irrelevant. It's the amount per head.
And remind us: Who owns Rex.
And remind us: Who owns Rex.
Not sure what the payment per head means anyway, the vast majority of funding was to provide minimum services to regional towns, nothing at all to do with staff, TBH I was interested how many totally fabricated numbers could be thrown around if I kept going. Might as well compare Hurricanes and Cyclones again, its just as relevant. Interesting to note QLink received similar amounts to Rex, just hidden in QFs spreadsheets. Who owns it? Who cares? Who owns Qantas, of the hundred or so investment funds with fingers in the pie, most with very foreign names who really knows. One thing for sure both companies are registered in Australia as Australian businesses and all income is taxed and handled the same way. Where the investors put their paid out dollars, who knows again, you might have to ask them. Do you buy petrol based on which company uses Australian refined fuel, or has majority shareholdings in Australian hands, I bet not, even though most on here would spend more at the pump than they ever would on airline tickets.
One thing for sure both companies are registered in Australia as Australian businesses and all income is taxed and handled the same way.
https://www.afr.com/policy/tax-and-s...0180215-h0w44g
Among many other large corporations. Tax paying is for patsies.
43: You said:
I then quoted “noise from AJ” to the contrary.
A Parliamentary Committee demanded answers from the Government officials administering the RANS program, about how much was given to Rex. I watched it.
If you say that the way in which governments hand out taxpayer money is never influenced by its political self-interests and those of its mates, I have cheap shares in the Harbour Bridge to sell you. That’s why the current one didn’t legislate for a Commonwealth level ICAC, despite having promised it would.
43: You said:
All airlines had equal access to all taxpayer initiatives the goverment provided. They all took their share, if you want validation its above board all you have to look at is the lack of noise from AJ or JH. They would be crying foul and demanding answers if there was even a hint of wrongdoing.
A Parliamentary Committee demanded answers from the Government officials administering the RANS program, about how much was given to Rex. I watched it.
If you say that the way in which governments hand out taxpayer money is never influenced by its political self-interests and those of its mates, I have cheap shares in the Harbour Bridge to sell you. That’s why the current one didn’t legislate for a Commonwealth level ICAC, despite having promised it would.
Regarding noise from AJ, he has received in salary and bonus from Qantas more than the amount that Rex received in RANS subsidy. But on topic what I was pointing out is that it is nowhere near seven fold now. After VA went into Administration QF quickly took on whatever funding it could from any source and is approaching double the amount of $1.2 billion that VA had requested to remain afloat. Now the official total has just passed $2billion, however that does not include state waivers and subsidies and the recent rebates for cheap fares which QF apparently gained 70% of. So the total value of QF subsidies and waivers could be higher than $3billion. The Rex amount was blown out of proportion because for whatever reason the RANS payouts were directly listed for public transparency, and Rex stood out as a major beneficiary, even though other entities have been paid way more through other channels.
So far to December 2021 QF has received directly through RANS/DANS/IFAM/JK/SJS/AAFRP/NZARF/TANS/IAS and goodness knows what else $2,140,000,000. They cleverly hid it in ticket revenue and freight revenue totals, rather than listing it as subsidised income like Rex has. They also hid Job Keeper by taking it out of manpower and staff expenses. It had to be accounted for somewhere so towards the end of the financial results its listed in notes, which list them in paragraphs rather than compiled tables.
Rex has a line in tabled stated revenues stating exactly how much subsidy they have received in revenue, which includes Job Keeper, RANS and a few others.
So if you are looking for shifty behavior why focus on the one that has open admission of what they have taken vs the one that hides it out of sight and combines it with 'customer' revenue on tables.
So far to December 2021 QF has received directly through RANS/DANS/IFAM/JK/SJS/AAFRP/NZARF/TANS/IAS and goodness knows what else $2,140,000,000. They cleverly hid it in ticket revenue and freight revenue totals, rather than listing it as subsidised income like Rex has. They also hid Job Keeper by taking it out of manpower and staff expenses. It had to be accounted for somewhere so towards the end of the financial results its listed in notes, which list them in paragraphs rather than compiled tables.
Rex has a line in tabled stated revenues stating exactly how much subsidy they have received in revenue, which includes Job Keeper, RANS and a few others.
So if you are looking for shifty behavior why focus on the one that has open admission of what they have taken vs the one that hides it out of sight and combines it with 'customer' revenue on tables.
So are you saying that QF is around about as bad as REX? If so, I agree.
That's all I was alluding to, all this jumping up and down about Rex when QF has been milking the cash cow as well.
The only one that missed the train was VA, but that was mostly because AJ tore out some tracks in their path by claiming that QF would not need subsidies so why should they get it. Hence why now QF accounts government subsidies under 'customer revenue'.
The only one that missed the train was VA, but that was mostly because AJ tore out some tracks in their path by claiming that QF would not need subsidies so why should they get it. Hence why now QF accounts government subsidies under 'customer revenue'.