REX to transition to ATRs, start domestic jet ops

[Lookleft]

Written by Gissing no less and not some spin doctor. Rex are about to find out that if you take on Qantas you want deep pockets and a very good plan. By their own admission part of their plan was based on Virgin not being around so I think the planning part needs a bit more work.

[PoppaJo]

So what happens later this year when the NG operation is struggling? They blame Qantas and Virgin for offering flights on the same route impacting their ability to continue to survive as an ongoing concern?

[DanV2]

Unless if the likes of 'infamous' airline investors such as EY or SQ wants a 2nd (and 4th in SQ's case) go at the Australian market by wasting away money on another Australian domestic carrier, I can't see REX sticking around long with the jets.

Unfortunately it would drag their government subsidised regional routes down with them in voluntary administration if the NG jet operation sends them broke.

[Paragraph377]

Originally Posted by PoppaJo

So what happens later this year when the NG operation is struggling? They blame Qantas and Virgin for offering flights on the same route impacting their ability to continue to survive as an ongoing concern?

Very well spoken by Gissing. He is 100% accurate. REX has competed for other Government funded routes and succeeded in winning tenders, some of those tenders had other small airlines servicing them, such as Skytrans in Queensland. The airlines that failed in their tender submissions were impacted greatly, and in some cases drastically. But of course REX doesn’t mention that. It’s about time they stopped crying to the media, Government and CCC every time something competitive pops up. It’s called running a business, and businesses survive by being competitive.

REX has a tendency to underestimate their competition. Whether that is pride, arrogance, a belief that Sharps political mates will pull them out of the **** if necessary, who knows? But starting a 737 operation, a proposed large operation at that, in the middle of a global collapse in the middle of a pandemic based on the assumption a competitor would not fly again is one of the most stupid, arrogant, embarrassing mistakes that I have seen an airline or a large business make in decades. If they go to the wall, they have their own stupidity and their own management decisions to blame for it.

If Joyce and Hrdlicka are as smart as we are lead to believe, they will be closely watching this mess that REX has made for itself and they will be looking for ways to ‘compete with REX accordingly’, possibly to the detriment of REX. Perhaps REX ought to invest in a CEO and Board with commercial, marketing, finance and business strategy skills in the future?

[1A_Please]

Originally Posted by Paragraph377

Perhaps REX ought to invest in a CEO and Board with commercial, marketing, finance and business strategy skills in the future?

That assumes there is a future!!

[minigundiplomat]

This is all the responsibility of Rex's management. In a world of hungry lions, you don't allow yourself to become a bleeding zebra.

[wheels_down]

It's like they are wanting the public to feel sorry for them because they are a "country battler airline". I read this as nothing but a move to shift blame from future problems, away from itself, and to its competitors. People flying ML-SY do not give two ****s about Rex and its "heart being in the country" or whatever it is (isn't it Singapore owned?!). Completely different markets and clientele.

Look we all want it to succeed, gives our colleagues a job again, and so on, however it gets more bizarre as each week passes.

[On eyre]

Originally Posted by On eyre

Six months max

I apologise all - I was obviously too optimistic. 😳😳

[On eyre]

Originally Posted by On eyre

Desperation setting in. I hope, for the country’s sake, that when this little exercise falls over it doesn’t take the regional networks with it.
WL never performs well when competition heats up.

This needs repeating unfortunately but every passing day confirms my fears.

[SHVC]

Maybe Sharpie should of kept his comments to himself, their share value is in a slow decline whilst QF seem to be on the up.

[Green.Dot]

I sense somebody is already out there making a Rex version of the famous scene out of “Downfall”.

[LostWanderer]

Originally Posted by minigundiplomat

This is all the responsibility of Rex's management. In a world of hungry lions, you don't allow yourself to become a bleeding zebra.

The zebra is about to be feasted on by said lions til there is but a carcass remaining. Let’s not beat around the bush, QF and VA are going to eat this new operation alive in record time.

As mentioned by many earlier, this plan only had a chance if VA didn’t exist anymore. 3 months tops before a scale down, public sympathy campaign and shuttering of the great 737 experiment. Then Rex beg the government for more $ and we are back to where we started.

I would love to be wrong on this, jobs for pilots is what we all want right now but this is looking like another OzJet type situation to me, an optimistic dream but no demand for it.

[PoppaJo]

Originally Posted by LostWanderer

Let’s not beat around the bush, QF and VA are going to eat this new operation alive in record time.

I don’t think Alan gives two hoots about this and will let it die on its own accord, however Jayne certainly is going it at the moment and appears wants that 🏆 for killing it. Don’t underestimate the significance that has in executive circles, the title of taking out the competition.

Bain will want to make its mark on this land and show who is boss, and taking out Rex is a major part of that.

[Keg]

I think the difference is that Alan isn’t looking at Rex and wondering if he can survive it whereas Jayne is. Jayne knows that if she doesn’t kill Rex the odds are that her corporate career is toast.

[Going Nowhere]

All I think AJ is doing right now in regards to Rex is working out which Rex port to drop a Dash into next.

[Paragraph377]

Originally Posted by Going Nowhere

All I think AJ is doing right now in regards to Rex is working out which Rex port to drop a Dash into next.

Absolutely. Anyone who thinks that QF has no interest in what REX is doing is naive. In the current environment every passenger dollar spent flying on a REX 737 from 1 March is a passenger dollar not being potentially spent flying with Qantas. Considering REX’s so-called big picture plans regarding the golden triangle operation does grab the attention of Qantas, and so it should. “Great oaks from little acorns grow”, well at least that is how Qantas would be viewing it, VA as well. The public statement from Gissing was very well worded, and you really have to read between the lines. It was a very public Qantas warning shot across the bow of REX. ‘Going Nowhere’ is correct, and there is more than one way to skin a cat. Poke your nose into the Qantas golden triangle and see what happens. I also predict Dash 8 services popping up or increasing on certain REX routes.
To be con’t.......

[DirectAnywhere]

Originally Posted by Keg

the odds are that her corporate career is toast.

I doubt she’s overly worried about that. Failure and incompetence has never presented much of a barrier to a lucrative corporate career in recent Australian history.

[Roj approved]

Originally Posted by DirectAnywhere

I doubt she’s overly worried about that. Failure and incompetence has never presented much of a barrier to a lucrative corporate career in recent Australian history.

Hahahaha, sadly so true

[SHVC]

In today’s Australian, Sharpie is sounding more desperate than ever. He has accused QF predatory behavior for it decision to move into smaller routes, threatening the airline could fold when commonwealth assistance ends in March. He desperately asked the ACCC to intervene. Mr Sharp failed to address Rex bold move into the golden triangle trying to lure valuable passengers from QF, JQ and VA. Who is the predator.

Appears the walls at Rex are being exposed, they’re f$&ked and have spent to much cash just realizing this jet op should of been out on the shelf for a few yrs or until the administration of VA to have been completed.

[walschaert valve]

He was on the ABC Radio National this morning too.