REX to transition to ATRs, start domestic jet ops
Jayne did mention about carrying the pain of paying the costs of the $39 fares herself (against REX) for a bit.
https://www.afr.com/companies/transp...0210505-p57p7x
https://www.afr.com/companies/transp...0210505-p57p7x
You're right. VA appears to be doing very well at the moment.
https://simpleflying.com/rex-orders-...box=1620797820
Looks like they're so happy with the services that another 4 737s are on the way with JS claiming things are going better than planned! 🤔
Looks like they're so happy with the services that another 4 737s are on the way with JS claiming things are going better than planned! 🤔
https://simpleflying.com/rex-orders-...box=1620797820
Looks like they're so happy with the services that another 4 737s are on the way with JS claiming things are going better than planned! 🤔
Looks like they're so happy with the services that another 4 737s are on the way with JS claiming things are going better than planned! 🤔
Having said that - they do need some sort of economies of scale to make this whole thing work....
So going back to the initial Rex strategy this is what they had to say about operating statistics and projections;
Are Rex getting an 80% load factor?
Is the average ticket price $200?
Do they still think that 10 aircraft are going to “translate to $120M profits”?
The best way to have a good handle on the revenue projections is to consider the following (using the Syd-Mel route as a guide) ▪ One aircraft carries about 300,000 pax a year at 80% load factor
▪ Average ticket price is $200 (pre-Covid)
▪ If Rex’s cost advantage is 30% then that means $60 per ticket
▪ Giving up $20 as fare discount and assuming the $40 as profits would translate to $12M profits per aircraft
▪ 10 aircraft would translate to $120M profits
▪ In reality, the average cost per passenger (crew, fuel, engineering, lease etc) for typical carrier would be about $50 ▪ Depending on where the average ticket price will land, the profits per aircraft could be very significant
▪ Average ticket price is $200 (pre-Covid)
▪ If Rex’s cost advantage is 30% then that means $60 per ticket
▪ Giving up $20 as fare discount and assuming the $40 as profits would translate to $12M profits per aircraft
▪ 10 aircraft would translate to $120M profits
▪ In reality, the average cost per passenger (crew, fuel, engineering, lease etc) for typical carrier would be about $50 ▪ Depending on where the average ticket price will land, the profits per aircraft could be very significant
Is the average ticket price $200?
Do they still think that 10 aircraft are going to “translate to $120M profits”?
https://simpleflying.com/rex-orders-...box=1620797820
Looks like they're so happy with the services that another 4 737s are on the way with JS claiming things are going better than planned! 🤔
Looks like they're so happy with the services that another 4 737s are on the way with JS claiming things are going better than planned! 🤔
Sharp also said
“I was talking to one of our pilots this morning. He says he’s never done a flight between Melbourne and Adelaide, or back the other way without 160 passengers onboard the aircraft that takes 165 passengers. So it gives you an idea of the load factors that we’re getting.
Quote:
The best way to have a good handle on the revenue projections is to consider the following (using the Syd-Mel route as a guide) ▪ One aircraft carries about 300,000 pax a year at 80% load factor
▪ Average ticket price is $200 (pre-Covid)
▪ If Rex’s cost advantage is 30% then that means $60 per ticket
▪ Giving up $20 as fare discount and assuming the $40 as profits would translate to $12M profits per aircraft
▪ 10 aircraft would translate to $120M profits
▪ In reality, the average cost per passenger (crew, fuel, engineering, lease etc) for typical carrier would be about $50 ▪ Depending on where the average ticket price will land, the profits per aircraft could be very significant
Are Rex getting an 80% load factor?
Is the average ticket price $200?
Do they still think that 10 aircraft are going to “translate to $120M profits”?
The best way to have a good handle on the revenue projections is to consider the following (using the Syd-Mel route as a guide) ▪ One aircraft carries about 300,000 pax a year at 80% load factor
▪ Average ticket price is $200 (pre-Covid)
▪ If Rex’s cost advantage is 30% then that means $60 per ticket
▪ Giving up $20 as fare discount and assuming the $40 as profits would translate to $12M profits per aircraft
▪ 10 aircraft would translate to $120M profits
▪ In reality, the average cost per passenger (crew, fuel, engineering, lease etc) for typical carrier would be about $50 ▪ Depending on where the average ticket price will land, the profits per aircraft could be very significant
Are Rex getting an 80% load factor?
Is the average ticket price $200?
Do they still think that 10 aircraft are going to “translate to $120M profits”?
Join Date: Aug 2019
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Just waiting for the entire operation to fizz out whilst munching on popcorn.
Sure, mid year school holidays might add some punters to backfill what would’ve been Tiger’s operation but other than that it’s bleeding.
Mates (who used to work at Rex) have issues with their terrible middle management and staff morale is at a terrifying low.
Qantas and Jetstar will live another day.
So too, will Virgin. I heard at the terminal the other day: “Rex who?”
Virgin still has name recognition and a loyalty scheme. What’s Rex going to offer? DingoDollars? RexDollars?
Everyone in Australia was already sold on the idea that if you ain’t going Qantas, then you going Virgin. JH seems to be doing a better job at V then at the star, as long as their old ways don’t creep back in, Rex will be gone in under 18 months.
Sure, mid year school holidays might add some punters to backfill what would’ve been Tiger’s operation but other than that it’s bleeding.
Mates (who used to work at Rex) have issues with their terrible middle management and staff morale is at a terrifying low.
Qantas and Jetstar will live another day.
So too, will Virgin. I heard at the terminal the other day: “Rex who?”
Virgin still has name recognition and a loyalty scheme. What’s Rex going to offer? DingoDollars? RexDollars?
Everyone in Australia was already sold on the idea that if you ain’t going Qantas, then you going Virgin. JH seems to be doing a better job at V then at the star, as long as their old ways don’t creep back in, Rex will be gone in under 18 months.
The question is, will the financial problems of the 737 operation bring the whole company to a halt ? Or have they managed to financially quarantine the profitable turboprop operations from the 737 ops ?
Not sure of any “financial quarantine”, but it’s my understanding that both operate under the one AOC?
From publicly available information there's no financial firewalling between any of Rex's operations. The "parent" Regional Express Holdings has deeds of cross guarantee with all the Rex entities (eg Pel-Air, Rex Freight and Charter, Rex Investment Holdings, the Pilot Academy, etc). The debts of any entity become the debts of the parent and vice versa. Much like Billy Joel sang, "we'd all go down together".
Probably no more morbid than the published REX playsheet which openly planned to capitalize on Virgin's demise.
I'd say that would have put more than a few affected people offside.
I'd say that would have put more than a few affected people offside.
What a bunch of morbid bastards you are, particularly the knob with the popcorn
If John Sharp and Rex weren't such poor sports people might be a little more supportive. The fact that they cry, moan and stomp their feet the second they don't get their way just puts people off. Any bad feelings people have for them have be brought upon themselves.
Can confirm it's a separate operation.
Sorry to call you morbid bastards with your popcorn and coke. Rather than reflecting on Sharp's behaviour, I tend personally to think of the huge amount of decent people trying to feed their kids. But if eating popcorn and hoping more people lose their livelihood is what brings you joy.....well, drink up.