REX to transition to ATRs, start domestic jet ops

[Colonel_Klink]

Originally Posted by wheels_down

Leasing companies at the moment are not discounting beyond 2021. For obvious reasons also around early vaccine access and market pickup.

Currently looking at 40-50% reduction at the moment.

My understanding is Rex have the 737s at $60k a month for the first 12 months, increasing to $100k a month after that

[wheels_down]

Originally Posted by MelbourneFlyer

So Rex now says it will offer business class on its B737s, will be almost full service and better than Virgin but as cheap as Jetstar, and if the triangle launch with nine daily SYD-MEL return flights at launch. And if the triangle goes well it wants to end up with 30-40 B737s covering all capital cities: https://www.executivetraveller.com/n...hts-nationwide

Whatever they're smoking, I'll have some!

Sounds like the same thing Virgin was smoking a decade ago.

‘Jetstar Prices, Better than Virgin experience’
Righto.....😳

I hope they know what they are doing, well, it has the ability to send the whole operation under if they don’t.

[Section28- BE]

"Pending Market Conditions"......

rgds
S28- BE

[blubak]

Originally Posted by getaway

this is NOT tiger/jetstar. Rex already have existing customer base & 50 plus aircraft. Virgin/Qantas will no longer get ANY rex regional passengers connecting to trunk routes.

Why would lease fees creep up ? If they are smart, they would lock in long cheap leases. What other choice do aircraft owners have ?

Wonder if they are hedging any fuel ? Of course that costs money, but can save a lot of money too. Southwest were huge on hedging fuel & it was said all their profits one year recently, were from hedging fuel.

Lots of smart business facts in this post,many may not like how Rex have cried poor & now appear to be doing quite well but they are still going & now employing guys who otherwise would be on unemployment benefits.
Jetstar is propped up by its parent & creative accounting can produce results to suit the occasion so for me its a no brainer for Rex to move forward & make a success of it.
Again,the guys getting a pay cheque every week is who we should be happy for.

[Ladloy]

Originally Posted by blubak

Lots of smart business facts in this post,many may not like how Rex have cried poor & now appear to be doing quite well but they are still going & now employing guys who otherwise would be on unemployment benefits.
Jetstar is propped up by its parent & creative accounting can produce results to suit the occasion so for me its a no brainer for Rex to move forward & make a success of it.
Again,the guys getting a pay cheque every week is who we should be happy for.

Spoke to a rex mate last week. Most saab guys are working conveniently under their respective jobkeeper thresholds while management are too busy staring at their shiny jet to see qlink eating into the market share.

[Ragnor]

Originally Posted by wheels_down

I hope they know what they are doing, well, it has the ability to send the whole operation under if they don’t.

This will not happen, Sharpie will run to Big Mac and he will bail them out

[getaway]

Originally Posted by Ragnor

This will not happen, Sharpie will run to Big Mac and he will bail them out

the last thing Qantas & V2 want is a price war on golden triangle, so am sure there will be lots of freebees thrown around like frequent flyer points, entry to Q club, discounts on stuff.

Would not be surprised if Qantas/V2 introduced a "B class" frequent flyer point, which can only be used on that airline & not in peak hour & give it a name which sounds better than "A class" ff points.

& both Q/V2 will try & lock in as many leisure travellers as possible on SYD/MEL route ASAP, so doesn't matter how cheap Rex are, those passengers will be flying Q/v2.

[wheels_down]

The loser here could be Jetstar, well on the revenue front. Rex wants baggage and more legroom at Jetstar prices. Virgin comes into play with an expected ‘Basic Economy’ like Delta apparently in the works, so the cheapest fare could be at Jetstar levels. Why fly Jetstar with a $30 baggage fee?

Its going to be interesting to watch, a lot more so compared to what Tiger ever did to the market, which was sweet F all.

[Buttscratcher]

All this is bullish!t until they actually get their high capacity jet AOC.
I'm sure CASA are willingly handing them out to every starry-eyed entity that drifts through their transom.
........especially with the array of recent business failures.

[getaway]

Originally Posted by Buttscratcher

All this is bullish!t until they actually get their high capacity jet AOC.
I'm sure CASA are willingly handing them out to every starry-eyed entity that drifts through their transom.
........especially with the array of recent business failures.

don't you think with the deputy chairman being an ex fed transport minister & close links to national party helps enormously ?

[Buttscratcher]

We shall see.....but it ain't as easy as y'all suggest.

[MelbourneFlyer]

LOL, Rex has got VH-BZG, aka "Brett's Jet": https://www.executivetraveller.com/n...-brett-godfrey

Also check this out:

Curiously, Rex's fleet delivery schedule indicated that BZG – which like most of the initial Boeing 737s is being leased from Castlelake – would have its registration changed to MFM.
Those are notably the initials of Michael Francis McCormack: Australia's Deputy Prime Minister, National Party leader, proud son of Wagga Wagga and federal member for the local electorate of Riverina.
However, a spokesman for Regional Express told Executive Traveller that the first six Boeing 737s would all follow the airline's convention of registrations beginning with the letter R.

Imagine the outrage if Rex basically 'named' a jet for McCormack!

[Lookleft]

I wouldn't be writing Jetstar off. They, like their parent company, are a ruthless bunch and they are good at what they do. Don't forget that Jetstar was set up to counter Virgin and you could easily say mission accomplished. Tiger was the next one to go and they were never in the game. As for Rex they might know regional operations but HCAOC is the next level and if they think that it is just a matter of upscaling a turboprop operation then they will be the big loser. For better or for worse Jetstar has brand recognition and anyone wanting to fly will want to know that the seat they have purchased will be around for the long term.

[Buttscratcher]

Here's what I see.
In the middle of the Covid shutdown, REX is granted a huge chunk of funding to maintain Regional QLD RPT services.
During this time, and after years of debilitating losses, Virgin finally goes tits-up.
Thinking that they can do a better job with the exact type of aircraft, no experience and AOCs they don't have, REX announce 'hold my beer, I got this'.
...and everyone rejoices

[On eyre]

Originally Posted by Buttscratcher

Here's what I see.
In the middle of the Covid shutdown, REX is granted a huge chunk of funding to maintain Regional QLD RPT services.
During this time, and after years of debilitating losses, Virgin finally goes tits-up.
Thinking that they can do a better job with the exact type of aircraft, no experience and AOCs they don't have, REX announce 'hold my beer, I got this'.
...and everyone rejoices

Six months max

[Section28- BE]

ex news.com.au: Flight sale frenzy as Virgin offers half-a-million fares from $75....

Shall 'drop' this here as information (have, put 'it' on the V3 thread- as well).

news.com.au link here: https://www.news.com.au/travel/trave...44587da6cf7216

Extract of the 'Interesting' bit:

The sale is available on the following routes:

Sydney

Sydney – Byron Bay (Ballina) from $75

Sydney – Gold Coast from $79

Sydney – Coffs Harbour from $89

Sydney – Sunshine Coast from 89

Sydney – Melbourne from $99

Sydney – Adelaide from $119

Sydney – Perth from $169

Melbourne

Melbourne – Launceston from $79

Melbourne – Adelaide from $89

Melbourne – Newcastle from $89

Melbourne – Hobart from $99

Melbourne – Sydney from $99

Melbourne – Gold Coast from $119

Melbourne – Canberra from $119

Melbourne – Sunshine Coast from $129

Melbourne – Perth from $169

Brisbane

Brisbane – Newcastle from $89

Brisbane – Proserpine from $89

Brisbane – Sydney from 89

Brisbane – Mackay from $99

Brisbane – Rockhampton from $99

Brisbane – Cairns from $109

Brisbane – Hamilton Island from $115

Brisbane – Hobart from $139

Brisbane – Launceston from $159

Adelaide

Adelaide – Melbourne from $89

Adelaide – Sydney from $119

Adelaide – Gold Coast from $129

Adelaide – Brisbane from $129

Adelaide – Hobart from $169

Adelaide – Alice Springs from $169

Adelaide – Perth from $169

Canberra

Canberra – Sydney from $89

Canberra – Melbourne from $119

Canberra – Gold Coast from $139

Perth

Perth – Port Hedland from $119

Perth – Kalgoorlie from $149

Perth – Newman from $199

Perth – Karratha from $199

Perth – Sydney from $169

Perth – Melbourne from $169

Perth – Adelaide from $169

Hobart

Hobart – Melbourne from $99

Hobart – Sydney from $119

Hobart – Brisbane from $139

Launceston

Launceston – Melbourne from $79

Launceston – Sydney from $109

Launceston – Adelaide from $159

Darwin

Darwin – Brisbane from $169

Darwin – Sydney from $199

Darwin – Perth from $199

Alice Springs

Alice Springs – Adelaide from $169

Welcome to the 'Shark-Tank'- Michael & John and run some 'Numbers' on this 'stuff'... pending "Market Conditions" or not.....????

be well/
rgds all
S28_ BE

[Ragnor]

Jetstar can go as low as $19 AJ said himself. How long will it be before Sharpie lobbies MM for subsidised triangle for Rex.

[wheels_down]

Jetstar is successful because they have a large share (well now monopoly) of the low cost market across the domestic network, with many routes that not even Virgin will attempt. They also have some serious frequency on many leisure routes. The brand also has a higher percentage of brand awareness in the industry segment compared to Virgin.

Rex also is a brand that not many people would be aware of. They don’t even have a Facebook page, and I assume they don’t even have a marketing department. You don’t think Rex when you want to fly to Sydney just like corporates never considered Tiger for any routes. It doesn’t even pass your mind, you just book with QF or VA.

Sharpie seems very confident. Perhaps he sees something we don’t.

[Section28- BE]

Originally Posted by wheels_down

...... Sharpie seems very confident. Perhaps he sees something we don’t.

Very Good Point !!!!- what 'he' sees- verse the, and/Or what 'the Sharpie' does 'Know' as actual Fact....., at this point in time!!!!!

Reckon, ripper question- or NOT!!!
rgds all/be well
S28- BE

[430W]

Well if a rumour I have heard of the EX minister for transport and travel rorts has with regards his involvement and problems in Skytraders is true I would think Mr. Sharp may find he has trouble finding LNP friends to help with this little venture as they head for the hills. Sounded very messy.