REX AIRLINES Trading Halt
Thread Starter
Joined: Dec 2001
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From: Melbourne
Can anyone speculate as to why the regional arm can't potentially be considered profitable in its own right to justify its purchase?
Rex management cocked it up by neglecting it during their grand plans for the 737 op, but prior to that Rex was profitable in its own right for virtually its entire existence as a regional only operator.
Sure the Saabs are old and many are not in serviceable condition (thanks again to management) but is there a reason why a new owner of Rex wouldn't be able to bring the operation back to what it once was and continue to operate the ageing aircraft (because while they are old, they are cheap and relatively reliable when looked after)?
Rex management cocked it up by neglecting it during their grand plans for the 737 op, but prior to that Rex was profitable in its own right for virtually its entire existence as a regional only operator.
Sure the Saabs are old and many are not in serviceable condition (thanks again to management) but is there a reason why a new owner of Rex wouldn't be able to bring the operation back to what it once was and continue to operate the ageing aircraft (because while they are old, they are cheap and relatively reliable when looked after)?
Joined: Jan 2006
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From: Sydney Australia
Joined: Jan 2010
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From: Eagles Nest
Joined: Jul 2009
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From: Australia
More like $150M or similar. Let's be honest, they ONLY got it because that loudmouthed ****** that was their deputy chair just happened to have been in Federal politics in the National Party, the genius that privatised the airports and was going around every five minutes stating that Qantas was 'technically bankrupt' - what is it they say about people who accuse others of something actually being an act to divert attention from their own reality - e.g. US politicians railing against homosexuality suddenly get caught paying for a male prostitute - appears that the deputy chair may have been transferring onto Qantas the actual situation at his own company.
Joined: Jan 2006
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From: Sydney Australia
I think the word we’re looking for here AP is “Projection”.
WRT the $150M you speak of, you may be confusing that with the backing from the Hong Kong based PAG Equity group. The $300M was essentially provided gratis from the Federal Government as a Covid buffer.
WRT the $150M you speak of, you may be confusing that with the backing from the Hong Kong based PAG Equity group. The $300M was essentially provided gratis from the Federal Government as a Covid buffer.
Joined: May 2016
Aviation Qualifications: PPL
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From: Sunshine Coast
I'm seeing about $156 million by way of government grants and contacts relating to COVID relief finding its way into Rex's coffers.
There were four COVID grants programs established that Rex could access:
- GA75765 Australian Airline Financial Relief Package - fuel excise, and domestic aviation charges rebate.
- GA75931 Regional Airline Network Support - to support the sustainment of aviation services to regional Australia.
- GA75742 Regional Airline Funding Assistance - meant to be "last resort" funding to support regional aviation operators.
- GA192124 Retaining Domestic Airline Capability Program - meant to support the preservation of critical operational capabilities in preparedness for aviation recovery.
The GrantsConnect site contains records for all of those programs. Rex pulled down the following:
GA75765-V1 AAFRP - $3,055,000.00
GA75931-V10 RANS - $80,820,000.00
GA75742-V2 RAFA - $53,862,730.00
GA192124-V1 RDACP - $17,078,688.00
Total Grants - $154,816,418.00
Rex were also able to obtain financial assistance under the Domestic Aviation Network Support program, which the government ran as contracts-for-services, rather as a grant program. The AusTender site provides details of most awarded contracts and values (commercially sensitive and contracts subject to security considerations are excluded). AusTender shows the following contract references and values for Rex:
CN3755157 DANS - $180,956.16
CN3705162 DANS 2.0 - $399,072.96
CN3728444 DANS 3.0. - $395,841.60
CN3824055-A1 DANS 6.0 - $316,673.28
Total Contracts - $1,292,544.00
Total Grants and Contracts - $156,108,962.00
JobKeeper sits on top of that. According to Rex's annual reports they received a total of just shy of $29.45 million in JobKeeper payments.
That would bring total government COVID-related support to about $185.553 million.
All of this comes with the usual caveat that I may very well have missed something here.
Joined: Jan 2006
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From: Sydney Australia
Hi AP.
Clearly you have a much better grasp of the situation than I. I was told by several parties that it was in the order of $300M and I simply ran with that! Rumour network you know.
Thank you for the clarification (and your hard work). I’ll try to be a little more cautious in future.
Clearly you have a much better grasp of the situation than I. I was told by several parties that it was in the order of $300M and I simply ran with that! Rumour network you know.
Thank you for the clarification (and your hard work). I’ll try to be a little more cautious in future.
Joined: Mar 2002
Posts: 138
Likes: 20
From: Adelaide
Hi AP.
Clearly you have a much better grasp of the situation than I. I was told by several parties that it was in the order of $300M and I simply ran with that! Rumour network you know.
Thank you for the clarification (and your hard work). I’ll try to be a little more cautious in future.
Clearly you have a much better grasp of the situation than I. I was told by several parties that it was in the order of $300M and I simply ran with that! Rumour network you know.
Thank you for the clarification (and your hard work). I’ll try to be a little more cautious in future.
Joined: Jan 2012
Posts: 156
Likes: 28
From: Hervey Bay, Australia
I wonder if Link Airways (Vee H Aviation) might be able to to get something out of the remains of Rex. Some routes, Saabs and staff, now Link have an 'arrangement with Virgin,' could be beneficial for both of them.
Joined: Jul 2009
Posts: 569
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From: Australia
Hi AP.
Clearly you have a much better grasp of the situation than I. I was told by several parties that it was in the order of $300M and I simply ran with that! Rumour network you know.
Thank you for the clarification (and your hard work). I’ll try to be a little more cautious in future.
Clearly you have a much better grasp of the situation than I. I was told by several parties that it was in the order of $300M and I simply ran with that! Rumour network you know.
Thank you for the clarification (and your hard work). I’ll try to be a little more cautious in future.
Joined: Apr 2010
Posts: 375
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From: Brisbane
Toll close to buying PelA
https://www.ch-aviation.com/news/145...pel-air-report
Japan Post-owned logistics company TOLL Group is close to buying aeromedical and charter carrier Pel-Air Aviation (PFY, Sydney Kingsford Smith), according to The Australian Financial Review. Pel-Air is a sister carrier of Rex - Regional Express (ZL, Wagga Wagga), which is currently in administration and up for sale.
The newspaper said TOLL had agreed to terms and was expected to sign in the coming days. Pel-Air, which is profitable, operates a PC-24 and five Beech (twin turboprop) 300Cs on behalf of the NSW Ambulance Service, and two King Air 300Cs and five 200Cs on behalf of Ambulance Victoria, although ADS-B flight tracking data indicates not all aircraft are in service at any one time.
The newspaper said TOLL had agreed to terms and was expected to sign in the coming days. Pel-Air, which is profitable, operates a PC-24 and five Beech (twin turboprop) 300Cs on behalf of the NSW Ambulance Service, and two King Air 300Cs and five 200Cs on behalf of Ambulance Victoria, although ADS-B flight tracking data indicates not all aircraft are in service at any one time.
Joined: Jul 2000
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From: Australia
Joined: Apr 2010
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From: Brisbane
Joined: Dec 2023
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From: Oz
From what I read, the Westpac loan was guaranteed by the NSW and VIC Governments when the contract was signed years ago. I don’t believe Rex would have been able to secure that funding without that government support.
Westpac was covered regardless, and I would assume it’s still business as usual with that loan just continuing on, can someone confirm?
Westpac was covered regardless, and I would assume it’s still business as usual with that loan just continuing on, can someone confirm?
Joined: Jul 2000
Posts: 581
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From: Australia
Joined: Jan 2006
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From: Sydney Australia
2 days ago, during a Zoom between the administrators and employees it was said that to date no buyer for the regional business has been found (as expected). But then I am told, the CEO announced that the administrators have authorized the purchase of additional CT7(b) engines! Very strange?