REX to transition to ATRs, start domestic jet ops
Sharp and Co will say anything for some free publicity portraying REX as the underdog....a sad old man
That’s the first statement he has actually made giving a small hint of defeat and potential exit. He had been very vocal as we all know around how good it is to start a airline, we are going great guns etc..
Parked alongside at OOL the other day they can’t keep going with these numbers. We counted 9 offloaded and the baggage cart had about half dozen bags for the return.
I am led to believe that they are also flying some zero flights. Not sure if anyone can verify that.
Parked alongside at OOL the other day they can’t keep going with these numbers. We counted 9 offloaded and the baggage cart had about half dozen bags for the return.
I am led to believe that they are also flying some zero flights. Not sure if anyone can verify that.
It’s simple.
Qantas and Virgin (like every airline in the world) had virtually ground to a halt during the worst aviation crisis the world has seen and are now ramping up operations, stimulating demand and getting aircraft and staff flying again, even if that means not necessarily making huge sums of money in the short term.
While Rex was the only airline in the world to make a profit on the back of massive government handouts and leveraged that position to take a massive gamble on what the Australian aviation landscape would look like post COVID by starting an entirely new jet operation.
Now that their expensive Jet operation gamble has failed spectacularly it’s a bit rich to blame the incumbents when their whole business model revolved around there not being a Virgin Australia to compete with 🙄
Qantas and Virgin (like every airline in the world) had virtually ground to a halt during the worst aviation crisis the world has seen and are now ramping up operations, stimulating demand and getting aircraft and staff flying again, even if that means not necessarily making huge sums of money in the short term.
While Rex was the only airline in the world to make a profit on the back of massive government handouts and leveraged that position to take a massive gamble on what the Australian aviation landscape would look like post COVID by starting an entirely new jet operation.
Now that their expensive Jet operation gamble has failed spectacularly it’s a bit rich to blame the incumbents when their whole business model revolved around there not being a Virgin Australia to compete with 🙄
This is just sad to watch. When will this man actually take some responsibility? It beggars belief that he can actually make these statements and be taken seriously. The ACCC must have a special Rex inbox to handle all the appeals that come their way. Embarrassing!
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The decision to start 737 operations should ultimately be laid at the Board Chairman and CEO’s feet. The two of them got this business decision very wrong and they are paying a huge price for it, with more pain to come. Sharp might go down screaming that the entire world is at fault and not him, but it won’t change the fact that he has screwed up big time. The 737 operation will end in tears. And even though Joyce is circling an injured lamb and would love to bury them once and for all, he is playing a smart game. He knows the REX 737 operation is bleeding to death. Why risk the ire of the Australian public or a pineapple from the ACCC when REX is killing itself off without help from anybody else!
That’s the problem. He was a politician. He is used to doing and saying whatever he wants under parliamentary privilege. He is used to getting whatever he wants, when he wants. He is used to doing whatever he wants without being held to account. He is used to doing slippery deals behind protected doors that always benefits himself. He has taken that mindset and applied it to REX. Unfortunately he is too stupid to realise that although he can still call in favours, he no longer has the full freedom to do as he wants without consequences, without accountability even.
The decision to start 737 operations should ultimately be laid at the Board Chairman and CEO’s feet. The two of them got this business decision very wrong and they are paying a huge price for it, with more pain to come. Sharp might go down screaming that the entire world is at fault and not him, but it won’t change the fact that he has screwed up big time. The 737 operation will end in tears. And even though Joyce is circling an injured lamb and would love to bury them once and for all, he is playing a smart game. He knows the REX 737 operation is bleeding to death. Why risk the ire of the Australian public or a pineapple from the ACCC when REX is killing itself off without help from anybody else!
The decision to start 737 operations should ultimately be laid at the Board Chairman and CEO’s feet. The two of them got this business decision very wrong and they are paying a huge price for it, with more pain to come. Sharp might go down screaming that the entire world is at fault and not him, but it won’t change the fact that he has screwed up big time. The 737 operation will end in tears. And even though Joyce is circling an injured lamb and would love to bury them once and for all, he is playing a smart game. He knows the REX 737 operation is bleeding to death. Why risk the ire of the Australian public or a pineapple from the ACCC when REX is killing itself off without help from anybody else!
Some have suggested that REX had a long-term plan to prompt Bain to also enquire the REX operation. That may have been a plan if they had maintained a successful regional operation and stuck to their knitting. It looks like REX will emerge from this folly severely weakened so Bain will not be interested in acquiring from the shareholders and will probably prefer to wait until they can get business from administrators at a discount price without the associated liabilities having to be taken on.
It is hard to see what Sharp expects ACCC to do. Does he think a certain % of market share should be set aside for REX's use or that QF and VA have to charge a set fare? As was stated both airlines are effectively restarting from a ridiculously low base so, of course, they are adding capacity regularly and are also stimulating demand through rolling special deals. REX's entire jet expansion was predicated on the mistaken belief that VA would not restart and REX could copy Virgin Blue's 2001 playbook and become Australia's second airline. When Bain announced they were purchasing VA, REX should have seen that its attempt to start a jet operation was doomed. Bain was investing way too much to allow VA to fail.
Some have suggested that REX had a long-term plan to prompt Bain to also enquire the REX operation. That may have been a plan if they had maintained a successful regional operation and stuck to their knitting. It looks like REX will emerge from this folly severely weakened so Bain will not be interested in acquiring from the shareholders and will probably prefer to wait until they can get business from administrators at a discount price without the associated liabilities having to be taken on.
Some have suggested that REX had a long-term plan to prompt Bain to also enquire the REX operation. That may have been a plan if they had maintained a successful regional operation and stuck to their knitting. It looks like REX will emerge from this folly severely weakened so Bain will not be interested in acquiring from the shareholders and will probably prefer to wait until they can get business from administrators at a discount price without the associated liabilities having to be taken on.
my guess is that is not in Sharpy's playbook as it doesn't usually work well for pollies, especially those of a conservative ilk.
So how was their "busy" Friday night?