REX to buy National Jet Express (NJE)
Thread Starter
REX to buy National Jet Express (NJE)
REX announcement...
https://cdn-api.markitdigital.com/ap...df02a206a39ff4
For those who seem confused, yes this is the Bae 146 operation including freighters, the Q400 and Ejet FIFO.
Not the Cobham SAR or Coastwatch business units.
https://cdn-api.markitdigital.com/ap...df02a206a39ff4
For those who seem confused, yes this is the Bae 146 operation including freighters, the Q400 and Ejet FIFO.
Not the Cobham SAR or Coastwatch business units.
Thread Starter
https://www.businessnewsaustralia.co...t-and-qld.html
ReutersJuly 15 (Reuters) - Australian carrier Regional Express (REX.AX) said on Friday its unit would buy aviation operator Cobham's fly-in fly-out (FIFO) business National Jet Express (NJE) for A$48 million ($32.41 million), marking its entry into the charter servicing sector.
The deal comes at a time when regional heavyweight Qantas Ltd (QAN.AX) is looking to expand its footprint in the charter business, with the proposed acquisition of Alliance Aviation Services (AQZ.AX) in an A$610.8 million deal. read more
Report an adRex's bigger peers Qantas, Virgin Australia and Alliance Aviation are the dominant players in the Australian FIFO sector, where service providers ferry workers and miners to remote mining sites instead of total relocation.
The acquisition of NJE, which provides freight services from Sydney to other neighbouring states, as well as air charter services in Papua New Guinea, gives Rex additional eight Bombardier Q400 turboprops and six Embraer E190 jets, it said
Report an adNJE generated a revenue of A$142 million in 2021, Rex added.
The carrier will fund about 50% of the deal through its joint venture partners who agreed to convert debt funding into newly issued shares in NJE to ease the carrier's "debt burden".
"The joint venture will invest in modern aircraft and technology to enable NJE to expand from its traditional bases of WA (Western Australia) and SA (South Australia) and bring our unique brand of FIFO services also to Queensland and Northern Territory," Rex Executive Chairman Lim Kim Hai said.
Cobham Aviation counts diversified natural resource company Glencore Plc (GLEN.L) and nickel-lithium miner IGO Ltd among its customers.
Rex's shares were up 4.1% at A$1.27 as of 0011 GMT. The stock, however, has lost nearly 12% in value so far this year.
(This story corrects to South Australia and not South Africa in paragraph 7)
($1 = 1.4808 Australian dollars)
Given that the NJE fleet is mostly leased...
Australian carrier Rex to buy Cobham Aviation's mining charter service unit
ReutersJuly 15 (Reuters) - Australian carrier Regional Express (REX.AX) said on Friday its unit would buy aviation operator Cobham's fly-in fly-out (FIFO) business National Jet Express (NJE) for A$48 million ($32.41 million), marking its entry into the charter servicing sector.
The deal comes at a time when regional heavyweight Qantas Ltd (QAN.AX) is looking to expand its footprint in the charter business, with the proposed acquisition of Alliance Aviation Services (AQZ.AX) in an A$610.8 million deal. read more
Report an adRex's bigger peers Qantas, Virgin Australia and Alliance Aviation are the dominant players in the Australian FIFO sector, where service providers ferry workers and miners to remote mining sites instead of total relocation.
The acquisition of NJE, which provides freight services from Sydney to other neighbouring states, as well as air charter services in Papua New Guinea, gives Rex additional eight Bombardier Q400 turboprops and six Embraer E190 jets, it said
Report an adNJE generated a revenue of A$142 million in 2021, Rex added.
The carrier will fund about 50% of the deal through its joint venture partners who agreed to convert debt funding into newly issued shares in NJE to ease the carrier's "debt burden".
"The joint venture will invest in modern aircraft and technology to enable NJE to expand from its traditional bases of WA (Western Australia) and SA (South Australia) and bring our unique brand of FIFO services also to Queensland and Northern Territory," Rex Executive Chairman Lim Kim Hai said.
Cobham Aviation counts diversified natural resource company Glencore Plc (GLEN.L) and nickel-lithium miner IGO Ltd among its customers.
Rex's shares were up 4.1% at A$1.27 as of 0011 GMT. The stock, however, has lost nearly 12% in value so far this year.
(This story corrects to South Australia and not South Africa in paragraph 7)
($1 = 1.4808 Australian dollars)
Thread Starter
Rex To Buy National Jet Express In $48M Deal
BYANDREW CURRANPUBLISHED 21 HOURS AGOAustralia's Regional Express (Rex) is buying National Jet Express, the fly-in-fly-out and freight arm of Adelaide-based Cobham Aviation Services Australia. The deal, valued at around AU$48 million (US$32.4 million), will provide Rex with an entry card to the lucrative fly-in-fly-out (FIFO) resource sector work and help diversify its revenue streams.
Rex will acquire Q400s and Embraer E190 jets
Rex is best known as a regional airline flying turboprop Saab 340s to link country towns to capital cities. Recently, Rex has started flying Boeing 737-800s between a handful of Australia's capitals. However, it is having a tough time competing against big players like Qantas and Virgin Australia on these routes.The deal will see the eight Bombardier Q400 turboprops and six Embraer E190 jets belonging to National Jet Express (NJE) join Rex's fleet of 60 Saab 340s and six Boeing 737-800s. The Q400s have an average age of 8.1 years, and the Embraers are aged between 9.3 years and 15.2 years. Compared to Rex's Saab 340s, which have an average of 28.2 years, the new additions are positively youthful and will bring down the average age of Rex's overall fleet.
Rex buys a 20% stake in Australia's FIFO market
Rex's buy gives it a 20% share in Australia's revenue-rich FIFO operations that transport workers to remote mine and resource sites. Glencore's Minara Resources, Ansteel's Karara Mining, and IGO Limited are among the blue-chip FIFO customers Rex will inherit from the deal. In addition to the FIFO flights, NJE operates freight services from Sydney (SYD) to Adelaide (ADL), Brisbane (BNE), Melbourne (MEL), and Gold Coast/Coolangatta (OOL), as well as air charter services in Papua New Guinea.In a stock exchange filing on Friday, Rex said National Jet Systems' calendar 2021 revenue was AU$142 million. Rex is stumping up half of the $48 million to buy NJE. Rex is accessing $15 million from a credit line with a longstanding investor and the $9 million from cash reserves. A further $24 million is coming from private funds held by joint venture partners, including Rex Chairman Lim Kim Hai.
With this acquisition, Rex will have a FIFO arm that is simply unparalleled in Australia," said Rex's Chairman on Friday. "I believe that NJE's modern aircraft fleet and its long-term customer relationships overlayed with Rex's proven record of safety, reliability, and cost efficiencies would propel NJS to be the premier FIFO operator in Australia.
"The Company will invest in modern aircraft and technology to enable NJE to expand from its traditional bases of WA and SA and bring our unique brand of FIFO services also to Queensland and Northern Territory."
Rex will join rivals Qantas, Alliance Airlines, and Virgin Australia Regional Airlines (VARA) in the FIFO market. VARA's Western Australia-based operations are relatively modest, accounting for about 5% of the market. The two big players are Qantas and Brisbane-based Alliance Airlines. Qantas already owns 20% of Alliance and is making a play to buy the entire airline. That deal remains subject to regulatory approval, but if it proceeds, it will snag Qantas a 70% share of the FIFO market
It could be an opportunity to exit stage left with the failing 73 east coast op ”to focus on west Australian ops” and save face. let’s face it they’re only full at the moment because of school holidays. This time next week be less than 50 punters again.
Everybody's loads will be down post holidays, but I bet that Rex won’t be as dire as they were before.
It was either Willie Walsh or Michael O’Leary about 15 years ago that said by mid century ALL airline would be owned by 3-5 large entities. Maybe they are right, everyone is getting bought by someone.
I don’t think they pinched too many, customers would of been looking for a ML BN or OOL flight every other carrier was booked out. QF and VA have not done as much damage to their brand as ppl think, if you’re going to go by that logic ML, SY and BN airports will be struggling for punters as they were woeful in handling passengers, moving them through security and Sydney food court…crikey you can tell it’s privately owned now over half coffee shops are closed for first flights line ups for coffe at each of the only 3 open wind all the way around the food court. Spring holidays will creep up on everyone again and we will see the same again.
All those passengers on the news in recent weeks....never flying Jetstar ever again EVER!....Virgin has ruined my life....Qantas CEO gets paid too much not getting my money blah blah blah........next month they magically make a re appearance on said carriers again and again. Just throw them a few thousand FF points, watch their eyes light up, problem solved and the love affair continues on..
Which is why these monopolised carriers don't give two ****s. The Pax will be back. Revenue keeps coming. Until that tap is turned off, and the regulators start fining the living daylights out of the airlines, the bull**** experience continues. VA and QF have the market and pax by the balls. Rex will never have a chance.
Which is why these monopolised carriers don't give two ****s. The Pax will be back. Revenue keeps coming. Until that tap is turned off, and the regulators start fining the living daylights out of the airlines, the bull**** experience continues. VA and QF have the market and pax by the balls. Rex will never have a chance.
I doubt that, I bet no one here, and ordinary pax have ever read the T&C when buying a ticket in its entirety when paying with their CC! Pax can bring a bill of rights or anything but there is no case as it’s all there in the fine print that no one reads. Hell, how many go to bunnings, who has ever read the fine print on the entrance not me but, they are using facial recognition in some stores not illegal as they told you as a condition of entry. Don’t like it don’t enter.
They are referring to legislation in Europe that requires carriers to pay monetary penalties to passengers for avoidable delays.
If we had such laws carriers could not afford (literally) to behave the way they do,
If we had such laws carriers could not afford (literally) to behave the way they do,
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The solution is simple: Prohibit airlines from charging anything before the service is provided.
I’ve always said that any business which requires payment before the service is provided is a Ponzi Scheme.
I’ve always said that any business which requires payment before the service is provided is a Ponzi Scheme.
What do we think REX will do with Cobham, leave it as a separate entity of rebrand the frames and mix the fleet into the REX fleet
One would think that a couple of SAABs heading west to swap out a couple of Q400s for the east coast could be on the cards
REX just added another SAAB this month from Silver Airways, but those Q400s they inherited from Cobham could be added to for greater fleet flexibility on busier east coast legs
I can also see part of the next batch of 737s being used to launch transcontinental, linking FIFO workers to the east coast
A few more 190s added to the east coast to help launch new routes could also be on the cards, they are very popular with passengers....
Good fleet mix if it comes to fruition
34 seat SAAB
76 seat Q400
110 seat E190
176 seat 737
Opens up a world of possibilities........
One would think that a couple of SAABs heading west to swap out a couple of Q400s for the east coast could be on the cards
REX just added another SAAB this month from Silver Airways, but those Q400s they inherited from Cobham could be added to for greater fleet flexibility on busier east coast legs
I can also see part of the next batch of 737s being used to launch transcontinental, linking FIFO workers to the east coast
A few more 190s added to the east coast to help launch new routes could also be on the cards, they are very popular with passengers....
Good fleet mix if it comes to fruition
34 seat SAAB
76 seat Q400
110 seat E190
176 seat 737
Opens up a world of possibilities........