REX to transition to ATRs, start domestic jet ops
Geez Busbitch - should you really be on here saying "nice" things and showing some compassion? Best be careful
not following the lead of MickG, SHVC, bounceboeing and Paragraph 337 and the others with their incredibly repetitive and quite frankly
totally boring negativity. We get the idea you guys - you hate Rex and Sharp and you are all airline business experts. Give it a break.
Thats just my opinion and I'm entitled to it. Or do you want me to log on every day and say the same thing over and over and over
like you guys with nothing better to do
not following the lead of MickG, SHVC, bounceboeing and Paragraph 337 and the others with their incredibly repetitive and quite frankly
totally boring negativity. We get the idea you guys - you hate Rex and Sharp and you are all airline business experts. Give it a break.
Thats just my opinion and I'm entitled to it. Or do you want me to log on every day and say the same thing over and over and over
like you guys with nothing better to do
Geez Busbitch - should you really be on here saying "nice" things and showing some compassion? Best be careful
not following the lead of MickG, SHVC, bounceboeing and Paragraph 337 and the others with their incredibly repetitive and quite frankly
totally boring negativity. We get the idea you guys - you hate Rex and Sharp and you are all airline business experts. Give it a break.
Thats just my opinion and I'm entitled to it. Or do you want me to log on every day and say the same thing over and over and over
like you guys with nothing better to do
not following the lead of MickG, SHVC, bounceboeing and Paragraph 337 and the others with their incredibly repetitive and quite frankly
totally boring negativity. We get the idea you guys - you hate Rex and Sharp and you are all airline business experts. Give it a break.
Thats just my opinion and I'm entitled to it. Or do you want me to log on every day and say the same thing over and over and over
like you guys with nothing better to do
For the record, I hate neither Rex or John Sharp. I think that Sharp is a loud-mouth whinger and that Rex's management have seriously misjudged this expansion program (that's just my opinion and I'm entitled to it) but I don't hate either.
That said, if you don't like seeing "There's never been a better time to expand into the domestic market" trotted out, then best look away - that's unlikely to be forgotten any time soon.
Join Date: Oct 2013
Location: New Zealand
Age: 71
Posts: 1,475
Likes: 0
Received 0 Likes
on
0 Posts
And for the record, I have no issue with REX as an entity nor the pilot group. It’s the capitalist grubs like the majority of CEO’s and Board Directors, along with political vermin that I dislike.
Last edited by Paragraph377; 22nd Jul 2021 at 12:04.
Why would they want to recreate past mistakes?
Additionally, they already have a LCC AOC
and access to many 737’s and crew, what benefit would there be in buying a dud business off Rex?
Can the leasing companies say offer these Jets to Virgin? A use it or lose it sort of clause for Rex.
3/6 of these VA would want back are only 11 years old.
3/6 of these VA would want back are only 11 years old.
BZG/VUV/VUU are only 2010 builds.
The other three I wouldn’t touch.
The other three I wouldn’t touch.
Why would VA bother with those old machines? Strong rumours of Max 8 and 787 orders forthcoming. Max for short-haul international and 787 to restart US and Japan ops. They’re working on the timing, in conjunction with federal government, as it is contingent on border openings.
They’ve been busy certifying all sim instructors in the Max sim (full DTR) so that when the announcement is made, the training program can be rolled out expeditiously.
They’ve been busy certifying all sim instructors in the Max sim (full DTR) so that when the announcement is made, the training program can be rolled out expeditiously.
Why would VA bother with those old machines? Strong rumours of Max 8 and 787 orders forthcoming. Max for short-haul international and 787 to restart US and Japan ops. They’re working on the timing, in conjunction with federal government, as it is contingent on border openings.
They’ve been busy certifying all sim instructors in the Max sim (full DTR) so that when the announcement is made, the training program can be rolled out expeditiously.
They’ve been busy certifying all sim instructors in the Max sim (full DTR) so that when the announcement is made, the training program can be rolled out expeditiously.
Rumours of a 787 order would appear to be exactly that. Bain are very disciplined in how they realise their investment in VA and long-haul international flying would seem to be a fair way into the future for them. I wouldn't expect to see any 787s for VA before 2025 at the earliest.
Quite.
These lockdowns provide JS and the Singaporeans an excuse to exit the jet market before anymore of the $150m is thrown into the gurgler. It also allows them to blame the fed/state government rather than their own commercial vandalism.
These lockdowns provide JS and the Singaporeans an excuse to exit the jet market before anymore of the $150m is thrown into the gurgler. It also allows them to blame the fed/state government rather than their own commercial vandalism.
VA still have that AOC on ice. It depends on Rex owners, share holders, PAG if they want to sell the 737 operation to Bain.
Buy the operation save the crews, save the jobs and knocks out the opposition. Long shot yes, though something must give.
Buy the operation save the crews, save the jobs and knocks out the opposition. Long shot yes, though something must give.
There is no operation to sell, all grounded and before that burning cash every week.
I have a great business to sell you though…
Only if Rex were to default on their lease in such a fashion that repossession was triggered. Unremedied non-payment of rent is the typical 'termination event' that would lead to repossession.
The leasing companies really couldn't give a tinker's cuss as to whether the lessee is using the aircraft or not so long as rent is being paid as it falls due and asset value is being maintained. Non-use wouldn't be an event of default in of itself; non-use and failure to properly maintain the aircraft per the manufacture's calendar-based schedules and/or preservation guidance most certainly would be.
The leasing companies really couldn't give a tinker's cuss as to whether the lessee is using the aircraft or not so long as rent is being paid as it falls due and asset value is being maintained. Non-use wouldn't be an event of default in of itself; non-use and failure to properly maintain the aircraft per the manufacture's calendar-based schedules and/or preservation guidance most certainly would be.
Only if Rex were to default on their lease in such a fashion that repossession was triggered. Unremedied non-payment of rent is the typical 'termination event' that would lead to repossession.
The leasing companies really couldn't give a tinker's cuss as to whether the lessee is using the aircraft or not so long as rent is being paid as it falls due and asset value is being maintained. Non-use wouldn't be an event of default in of itself; non-use and failure to properly maintain the aircraft per the manufacture's calendar-based schedules and/or preservation guidance most certainly would be.
The leasing companies really couldn't give a tinker's cuss as to whether the lessee is using the aircraft or not so long as rent is being paid as it falls due and asset value is being maintained. Non-use wouldn't be an event of default in of itself; non-use and failure to properly maintain the aircraft per the manufacture's calendar-based schedules and/or preservation guidance most certainly would be.
There seems to be a perception in some quarters that power-by-the-hour leases are some sort of financial panacea for low utilisation. They're not. PBH is typically a 'tuned' arrangement pitched around forecast utilisation with a cap-and-collar for anticipated variations. They blend the relatively high fixed lease component that covers the return-on-capital to the leasing company with a much smaller utilisation-based pro-rated component for (usually engine) maintenance.
Not using the aircraft doesn't obviate the requirement to make the bulk of the lease payments. However, not utilising the aircraft does have a major impact on the airlines' ability to fund the lease costs from cash flow.
There's a reason why there are a couple of orders of magnitude fewer leasing companies than airlines and at least an order of magnitude fewer leasing companies going bust when compared to airlines. They are much better at making money under any and all circumstances.
Not using the aircraft doesn't obviate the requirement to make the bulk of the lease payments. However, not utilising the aircraft does have a major impact on the airlines' ability to fund the lease costs from cash flow.
There's a reason why there are a couple of orders of magnitude fewer leasing companies than airlines and at least an order of magnitude fewer leasing companies going bust when compared to airlines. They are much better at making money under any and all circumstances.
Pretty sure it's a temporary measure until borders reopen. Sounds like a prudent business decision to me. Seems like some people can't wait for Rex to fail. Can't we just acknowledge that many of their crew went through redundancy, unemployment and all the stress that accompanies it, only 18 months ago.
One potentially bright spot for the current/ex VA Jet crew, is that if they were on the VA 737 EBA when they were made redundant, they should have 5 years right of return when their number on the seniority list comes up.
Krusty
No one on the VAA 737 was made redundant (a few voluntaries though and they are excluded from the ‘right of return’). Only the wide body, ATR, VAI 737 and Tiger (all seperate eba’s to the VAA 737 eba) and yes they all have a right of return for five years according to their ‘seniority’ but then they lose the ‘right’ but will still be on the list and ‘presumably’ recalled before anyone off the street for a few more years. Hope it all works out for them all……..
No one on the VAA 737 was made redundant (a few voluntaries though and they are excluded from the ‘right of return’). Only the wide body, ATR, VAI 737 and Tiger (all seperate eba’s to the VAA 737 eba) and yes they all have a right of return for five years according to their ‘seniority’ but then they lose the ‘right’ but will still be on the list and ‘presumably’ recalled before anyone off the street for a few more years. Hope it all works out for them all……..
Yes, I think nearly all the initial 88 returnees, including the now ex-Rex cohort, were pretty much off the VA widebodies (tripler and 330.) Pretty much all of them had significant 73 time from the early days so getting up to speed isn’t a problem.