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rex Celebrating 20 Years

Old 15th Feb 2023, 09:32
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This is hilarious.

So Stayan having a go at those that are actually having a crack and appear to be doing ok.

Yea time will tell but hats off to Rex and Bonza. Shouldn’t we be full of encouragement and will for them all to succeed? Not hanging ****e at every opportunity.
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Old 19th Feb 2023, 00:46
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I reckon Melbourne - Hobart- Melbourne return, twice a day is my prediction, along with Adelaide.
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Old 19th Feb 2023, 01:25
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Originally Posted by Stationair8
I reckon Melbourne - Hobart- Melbourne return, twice a day is my prediction, along with Adelaide.
The Bonza bus to Bali is where my money is eventually. Mmmm Mmm Mmm M Max is the perfect aircraft for direct from the East Coast.

What could be better for Shazza and Bazza than a trip to Kuta to meet Rhonda?
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Old 19th Feb 2023, 04:09
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Originally Posted by Stationair8
I reckon Melbourne - Hobart- Melbourne return, twice a day is my prediction, along with Adelaide.
I get Melbourne Hobart to a degree
You mention Adelaide, to where Sydney or another return to Melbourne ?

They may well just put more flights on the triangle or go double daily to the Goldy as their loads seem fairly good from both SYD and MEL

Wouldn't write Perth off or even Cairns for that matter as they have a small regional feed into both
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Old 19th Feb 2023, 05:53
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They have not been that successful on the Gold Coast so not sure if Cairns is the right market. Certainly skews leisure, ie low cost.

Transcontinental is another story. The pricing is quite heavy. The others will be comfortable with heavy margins unless someone comes in to get some pie. Cheaper to fly to Asia across many periods vs flying across our nation at the moment.
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Old 19th Feb 2023, 06:42
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Originally Posted by PoppaJo
They have not been that successful on the Gold Coast so not sure if Cairns is the right market. Certainly skews leisure, ie low cost.
OOL had fair loads today 140s from SYD and MEL pretty much full to SYD and 90% full to MEL as expected on Sunday
Forward fares to both seem comparable to BNE
That said, I would have thought OOL would be a great route for ZL as not much business or FF pax, most are just looking at cost of fares, obviously good JQ market as well
REX and JQ fares are within a few dollars of each other, main difference is REX includes baggage and with most traveling for holidays to OOL, this puts REX lower than JQ

Cairns has regional connections although limited, and the same market as OOL, so while minimum seat cost may be lowish, I'd still reckon REX would end up with good loads

I do still agree Perth would be a better bet though....
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Old 27th Feb 2023, 23:35
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Where's the profit!?!
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Old 27th Feb 2023, 23:53
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Rex's HY23 results are out.

An after-tax loss of $16.5m for the six months to 31 December 2022, off of $340m in revenue.

The accompanying media release bangs on about the negative impact of the $22.7m mark-to-market (fair value) loss incurred as part of the PAG convertible notes transaction (Note 12 to the P&L). What the media release doesn't address is the fernangled $14.7m "gain" that they booked against the NJE acquisition (Note 13). According to Rex, NJE has a book value of $77.645m; on the basis that the acquisition cost was $48.18m, Rex are booking half the difference (Rex are only half-owners of NJE) as a gain.

Last edited by MickG0105; 28th Feb 2023 at 05:45. Reason: Typo
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Old 28th Feb 2023, 00:56
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Who ever is writing these ASX briefs needs to stop. Attacking their core business with “Regional operations have been a drag on the Group’s performance” poor choice of wording there.
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Old 28th Feb 2023, 01:36
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Originally Posted by SHVC
Who ever is writing these ASX briefs needs to stop. Attacking their core business with “Regional operations have been a drag on the Group’s performance” poor choice of wording there.
Maybe they don't see regional as their core business these days.
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Old 28th Feb 2023, 01:49
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It's a trend. For example, I reckon the operators of many of the privatised airports would not consider their core business to be the facilitation of the efficient movement of aircraft and passengers. The movement of aircraft and passengers is a sideshow (some would say sh*tshow).
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Old 28th Feb 2023, 10:20
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Deano is all quiet on this, he must be in shock at their loss.
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Old 28th Feb 2023, 20:41
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Originally Posted by SHVC
Deano is all quiet on this, he must be in shock at their loss.
Just an accounting loss
Remember years back QF had a $1.5 billion (or something like that) when they wrote down a number of assets probably why they pay no company tax....
It's hard to quantify where they are exactly with their dealing with PAG along with the Cobham investment
Quote
This loss includes a negative impact of A$23M related to mark-to-market valuation of the Convertible Note and Warrant facility entered into with PAG in 2020. This loss is not cash in nature and was brought about by the increase in value of Rex shares. Operating loss after tax for the period was A$1.9M but cash in bank almost doubled compared to the prior period
End quote

I can't see anything too worrying in their results thus far
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Old 28th Feb 2023, 20:56
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Originally Posted by SHVC
Deano is all quiet on this, he must be in shock at their loss.
And just as saying, "Gee, we're having a good run with the traffic lights today." inevitably heralds a red light, so too this ...
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Old 28th Feb 2023, 22:00
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Originally Posted by Deano969
Just an accounting lossRemember years back QF had a $1.5 billion (or something like that) when they wrote down a number of assets probably why they pay no company tax....It's hard to quantify where they are exactly with their dealing with PAG along with the Cobham investmentQuoteThis loss includes a negative impact of A$23M related to mark-to-market valuation of the Convertible Note and Warrant facility entered into with PAG in 2020. This loss is not cash in nature and was brought about by the increase in value of Rex shares. Operating loss after tax for the period was A$1.9M but cash in bank almost doubled compared to the prior periodEnd quote I can't see anything too worrying in their results thus far
what's your solution for no crew, 15 odd saabs grounded with no parts and an aging saab fleet
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Old 28th Feb 2023, 22:59
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Originally Posted by Ladloy
what's your solution for no crew, 15 odd saabs grounded with no parts and an aging saab fleet
Silver Airways have been exiting their SAABs, perhaps a few still available for parts if Link don't snap them up, btw why doesn't anyone hang s**t on Link for running old SAABs?
As for crew, well answer that and solve everyone's problems...
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Old 28th Feb 2023, 23:24
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Looks like it's been reported that SQ's 738s 9V-MGA and 9V-MGB are in the hangar without the engines. Both reportedly going to REX with a ETA of June 2023 on direct (sub)-lease/loan from SQ.
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Old 28th Feb 2023, 23:26
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Originally Posted by Deano969
Silver Airways have been exiting their SAABs, perhaps a few still available for parts if Link don't snap them up, btw why doesn't anyone hang s**t on Link for running old SAABs?
As for crew, well answer that and solve everyone's problems...
Link didn't take 100s of millions of taxpayer money from the government over COVID and give the board all bonuses while the crew lived below the poverty line. Then to start a jet operation and call the regional arm a drag on the financials. Second to that blame Qantas for all the woes instead of the looking introspectively.

Solving the crew problem is just two easy steps.
1. Remove the toxic culture
2. Pay them well.
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Old 1st Mar 2023, 03:51
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Financial analysis based on simply regurgitating comments from a company media release will yield insights commensurate with the effort that went into it.

Among the notable issues evidenced in Rex's HY23 results are:
  • For a six month period of generally favourable conditions, during which they generated their highest ever revenue (just shy of $340m), Rex returned an operating loss of $4.795m.
  • Rex's selling and marketing costs rose by just over $12.5m. This almost certainly reflects the selling costs associated with the Flight Centre deal. Total jet ops revenue for the corresponding period was likely around $150m. Given that some of that revenue would have been booked directly with Rex, that seems to indicate a pretty high cost of sales through their travel agency partner(s). The full year results will flesh this picture out.
  • Rex's net debt position is now at an all-time high, around $285m. This was driven almost entirely by a nearly $80m draw down on their loan facility with Westpac.
  • Retained earnings of $36.165m are at a decade-long low. They are less than 30 percent of the HY20 (pre-COVID) number off of more than twice the revenue.
  • Total equity fell by nearly $20m (12.8 percent).

None of that augurs particularly well, but well, never say never. It is, however, difficult to find which lever or levers Rex is hoping to pull to turn things around in the second half of the FY.

Last edited by MickG0105; 1st Mar 2023 at 04:11. Reason: Typo
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Old 1st Mar 2023, 04:41
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The unnecessary weekly ASX updates make sense now, they’re trying to make it look good when it’s not.
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