REX to transition to ATRs, start domestic jet ops
Its good for some word of mouth promotion I guess but thats all.
It isn't a big deal and that is the problem. It won't do anything to change the position Rex is in right now. I guarantee you there are very very few Delta passengers who are likely to be wanting to connect on to Coober Pedy etc...and the 737 operation is so small its not likely to be much use for many connections there either unless they can expand significantly.
Its good for some word of mouth promotion I guess but thats all.
Its good for some word of mouth promotion I guess but thats all.
Don’t Rex think that they sit above Virgin as they consider themselves a ‘full service’ airline?
I am genuinely surprised at how they are sustaining the loads that they are. Their aircraft are always parked in either SY or ML - and the Rex checkin at Melbourne is constantly deserted. Something has to give?
I am genuinely surprised at how they are sustaining the loads that they are. Their aircraft are always parked in either SY or ML - and the Rex checkin at Melbourne is constantly deserted. Something has to give?
They are able to keep going because their regional franchise is profitable so the cash isn't running out as fast as it would otherwise. At some point, some shareholders are going to start asking some questions as to why so much money is being pi$$ed up against the wall at which point a class action against directors is not out of the question.
They don’t give a whole heap of detail around operating costs inside the 737 operation but you can get a rough estimate with the detail they have given, plus or minus won’t be a whole lot off. Say an average operating cost of $10k per flight assuming unhedged and based on today’s rising oil price. Assuming leasing costs have now doubled which was quoted somewhere. Average load seems to be about 30 bodies. $3k revenue/ flight, 120 flights a week, $1M loss per week.
Tiger also burnt about $50m year on startup however had the opposite issue with high equipment costs/full loads, we are dealing with low equipment costs, high oil prices and little revenue in this situation. Rex needs to slash airfares to save itself.
Last edited by PoppaJo; 5th May 2022 at 10:22.
Given back in June 2021 they aimed to have 8 737s in service by September 2021, I believe they got to 6 have sent one back so only 5 now. Also they were going to set up a frequent flyer program late 2021 to early 2022. As none of this has happened it could suggest they’re not doing so well. I have seen one disembark in OOL this week and I didn’t count above double digits.
I think it’s burning more than you think. Rex during last decade only had earnings of around $15m after tax each year.
When you say "own" real estate, do you mean own the fee simple to the land on which there happens to be infrastructure?
Or are you using "own" in the sense of having something like a lease - of whatever duration - granted by the actual owner of the land that happens to have runways or uni campus buildings on it?
Or are you using "own" in the sense of having something like a lease - of whatever duration - granted by the actual owner of the land that happens to have runways or uni campus buildings on it?
One more 737 added to the list while the Saab EBA is "not feasible in these economic times". I hope the majors gut their crew in the next year or two.
Expect whinging shortly. Jetstar finally launching Melbourne to Canberra (and Goldy)
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I thought they said they getting 6 more? oh wait then it was 30? "Favorable lease conditions"....That's like first home buyers looking for a 300khouse in Bondi ...Dream world this leadership team
This operation is doing very poorly. Talking to the actual drivers they are getting BS updates like "Our load forecasts are looking great". In reality some days the ENTIRE network has less than 100 punters per flight.....
I would be very worried about this operation....set up under a separate AOC, very easy to walk away. Another family destroyer
This operation is doing very poorly. Talking to the actual drivers they are getting BS updates like "Our load forecasts are looking great". In reality some days the ENTIRE network has less than 100 punters per flight.....
I would be very worried about this operation....set up under a separate AOC, very easy to walk away. Another family destroyer
It’s bizarre that they are signing another lease when they are flying around, like this morning, a flight with a 0% load.
https://www.farmonline.com.au/story/...outes/?cs=5706
Meanwhile, Cobham's Australian operations, established in 1990 to provide jet FIFO services to oil and gas producer Santos's Moomba site, have been effectively on the market for the past three months.
The original Australian business, part of the big UK-based Cobham Aviation business since 2000, has been owned by US private equity group Advent International for the past two years.
It flies about 20 aircraft working VIP charter services and FIFO routes, particularly in Western Australia and South Australia.
It also support's Qantas Freight's domestic operation, moving overnight freight on more than 2500 flights a year.
Another division is contracted to the federal government for aerial border surveillance and search-and-rescue operations spanning Australia's economic zone.
Although no official confirmation has come from Regional Express, Rex is understood to be running a due diligence investigation on the charter and FIFO business.
The original Australian business, part of the big UK-based Cobham Aviation business since 2000, has been owned by US private equity group Advent International for the past two years.
It flies about 20 aircraft working VIP charter services and FIFO routes, particularly in Western Australia and South Australia.
It also support's Qantas Freight's domestic operation, moving overnight freight on more than 2500 flights a year.
Another division is contracted to the federal government for aerial border surveillance and search-and-rescue operations spanning Australia's economic zone.
Although no official confirmation has come from Regional Express, Rex is understood to be running a due diligence investigation on the charter and FIFO business.
REX appear to have successfully conned the government into believing that there are no suitable pilots to fly their 737s, and therefore time for bringing in overseas pilots.
Utter garbage.
Utter garbage.