REX to transition to ATRs, start domestic jet ops
The demand is currently alive and well. I’ve been full for quite a while now. Oversold on many. We are not selling our arses off either for next to nothing.
The issue here is they can’t stimulate demand from what is ultra low fares.
The only other startup I’ve heard about with similar load issues was Ozjet.
The issue here is they can’t stimulate demand from what is ultra low fares.
The only other startup I’ve heard about with similar load issues was Ozjet.
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It was never going to last though.
The plan was the flights would operate similar to a `Bus service` for J Class day commuters between MEL/SYD and vice versa at Y Class pricing. Essentially a schedule with no hard and fast 'flight closed' times for J Pax to hop on at the last minute, with carry-on only, if they were running late.
It was never going to last though.
It was never going to last though.
Blind Freddy could see that while that product might suit many business passengers, in order to poach said pax from QF and VA a lot of pre-launch spade work was going to be required. They need to get the businesses that were paying for the flights to sign up - a very significant matter that they didn't address.
The other big issue for biz pax was flight frequency - a little difficult to achieve with only a handful of jets.
And of course launching a product pitched at business two weeks before Christmas holidays was always going to be problematic - that hiatus was always going to punch a smoking hole in cash flows.
Separately, before the well let's just call it "correspondence" begins, may I salute your "courage" in wading into the prruner pool.
The plan was the flights would operate similar to a `Bus service` for J Class day commuters between MEL/SYD and vice versa at Y Class pricing. Essentially a schedule with no hard and fast 'flight closed' times for J Pax to hop on at the last minute, with carry-on only, if they were running late.
It was never going to last though.
It was never going to last though.
I can understand the handful of OOL-SYD/MEL flights running at high load factors given that was the middle weekend of two weeks of school holidays but SYD-MEL, which constituted half of the capacity?
Looks like they will do better in places like OOL. The last couple of times at Cooly we parked alongside we played count the pax and was at least 150 in and out.
That was the first market Tiger went into when they kicked off.
Will be interesting should they try and muscle into CNS. Peak season is nearly here. Tiger had 2000 seats daily in that market not too long ago.
That was the first market Tiger went into when they kicked off.
Will be interesting should they try and muscle into CNS. Peak season is nearly here. Tiger had 2000 seats daily in that market not too long ago.
Load factor is irrelevant.
You can have 160 pax and still not be able to pay the bills.
You can have 160 pax and still not be able to pay the bills.
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To ensure a more balanced approach. Perhaps replace the 6am triangle runs with a Gold Coast run.
Today
ML-SY 60
SY-ML 60
ML-SY 120
SY-ML 120
OOL-SY 140
I would say at the moment the focus for ZL is probably just getting bums on seats which has been the issue of recent weeks. Better than running all flights at 20 heads I guess.
Today
ML-SY 60
SY-ML 60
ML-SY 120
SY-ML 120
OOL-SY 140
You can have 160 pax and still not be able to pay the bills.
You'd expect all day time flights to OOL to be nearly full during school holidays. It will be more interesting to see what the situation is in a couple of weeks. There is no doubt the MEL-SYD flights are a disaster with no obvious way that this can be overcome. BNE-SYD and BNE-MEL just can't happen at this stage. They may have a future of sorts as a leisure airline though this will depend on loads outside of school holidays and require the opening up more ports such as CNS, PPP, DRW and BME.
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Triangle they need to target peak leisure times. Pull back during the week and go harder on Friday and Sunday.
They really need to get into Cairns and Darwin this peak season. When do the next machines arrive? Jetstar are 6 Daily ML/SY during peak season to Cairns largely A321. Get in on it.
Early signs here that they need to be going after the Tiger share. A Triangle route can complement that however keep it smaller. Leave the suits to the other two.
They really need to get into Cairns and Darwin this peak season. When do the next machines arrive? Jetstar are 6 Daily ML/SY during peak season to Cairns largely A321. Get in on it.
Early signs here that they need to be going after the Tiger share. A Triangle route can complement that however keep it smaller. Leave the suits to the other two.
I agree that they are morphing into Tiger even down to the elderly 737s. The problem is Jetstar, Qantas and Virgin are all aggressively competing now on leisure routes so a lot of the Tiger share may have already gone unless REX is prepared to take themselves down-market and become a true ULCC positioned below Jetstar.
This would mean they will be more like Spirit in the US, or Ryanair in Europe with a very no-frills operation. The virtually pointless existing J class offering would be removed and the density increased to a 28" pitch. Gates leased from airports would also change with no airbridges required. They would need to gird their loins to withstand the inevitable ACA segment complaining that nothing is included and delays are not recompensed with accommodation, meal vouchers etc even though this was clearly stated when the ultra-cheap ticket was sold.
This would mean they will be more like Spirit in the US, or Ryanair in Europe with a very no-frills operation. The virtually pointless existing J class offering would be removed and the density increased to a 28" pitch. Gates leased from airports would also change with no airbridges required. They would need to gird their loins to withstand the inevitable ACA segment complaining that nothing is included and delays are not recompensed with accommodation, meal vouchers etc even though this was clearly stated when the ultra-cheap ticket was sold.
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