REX AIRLINES Trading Halt
Joined: May 2016
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From: Sunshine Coast
Thread Starter
Joined: Dec 2001
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From: Melbourne
As I understand it, ASIC has the power to ban people from executive positions in the finance industry but not other market sectors so, in theory, LKH could be CEO but not be a board member which would probably be unusual in itself.
Joined: Oct 2000
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From: OZ
It seems the $80 million isn’t helping get that many aircraft in the air. Lots of cancellations and delays of late.
Engineers are being flown around on flights topping oil up in engines every sector on some planes that have high usage but are apparently still within limits.
I thought casa would be keeping a closer eye on this operation at the moment, it use to be a requirement to hold an AOC back in the 90’s, that the company had to be solvent with accountants reports etc.
I bet EY are making a huge profit out of this **** show, the only real winners out of this.
Engineers are being flown around on flights topping oil up in engines every sector on some planes that have high usage but are apparently still within limits.
I thought casa would be keeping a closer eye on this operation at the moment, it use to be a requirement to hold an AOC back in the 90’s, that the company had to be solvent with accountants reports etc.
I bet EY are making a huge profit out of this **** show, the only real winners out of this.
Thread Starter
Joined: Dec 2001
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From: Melbourne
Joined: Jan 2006
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From: Sydney Australia
Prior to the Government announcing the $80m grant, Howell informed the employees that the Administrators had “authorised” him to put the grounded aircraft back into the air. Notwithstanding the world wide shortage of CT7-9B engines, many of those aircraft need more than just donks!
A big chunk of that $80M was earmarked for the poor 660 souls who were unceremoniously liquidated back in June. I hope they are sorted before these clowns squander the cash like they did over the last 4 years.
A big chunk of that $80M was earmarked for the poor 660 souls who were unceremoniously liquidated back in June. I hope they are sorted before these clowns squander the cash like they did over the last 4 years.
Joined: Oct 2024
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From: Sydney
Prior to the Government announcing the $80m grant, Howell informed the employees that the Administrators had “authorised” him to put the grounded aircraft back into the air. Notwithstanding the world wide shortage of CT7-9B engines, many of those aircraft need more than just donks!
A big chunk of that $80M was earmarked for the poor 660 souls who were unceremoniously liquidated back in June. I hope they are sorted before these clowns squander the cash like they did over the last 4 years.
A big chunk of that $80M was earmarked for the poor 660 souls who were unceremoniously liquidated back in June. I hope they are sorted before these clowns squander the cash like they did over the last 4 years.
Was it though. As part of the government stepping in, they were also granting early access to FEG program for them. The second round of lay offs when they got rid of catering, call center & the like are being paid out. Surely they should all be paid out.
I still remember in the early days of the jets operation & one his meeting where some clown suggested doing business lounges & business class even though that is exactly what cause virgin to crash & burn before.
As to the scarcity of engines. EY have probably gone back to GE and pleaded to let them back in on the maintenance program. Engines will need overhauling 7 if parts are scarce i doubt they will have the company in a better position before june.
Joined: Jan 2010
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From: Eagles Nest
Goverment to buy PGA ? The problem of servicing unprofitable regional routes continues . Back to the past where profitable routes subsidies unprofitable routes , socialism or let these routes die a natural death , capitalism?
Election coming up .
Election coming up .
Last edited by Toruk Macto; 15th December 2024 at 01:43.
Joined: Dec 2023
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From: Oz
As seen in the Bonza auction, the only real assets had been computer equipment, staff uniforms, some whiteboards, and a whole bunch of iPads.
Rex should have some stairs and chocks as they did in-house some ground ops. I am sure Virgin have already got its hands on the spare parts inventory.
I don’t know the status on the simulator? Last I heard it was funded by the state. Sell it off and returns the funds to the taxpayer.
Rex should have some stairs and chocks as they did in-house some ground ops. I am sure Virgin have already got its hands on the spare parts inventory.
I don’t know the status on the simulator? Last I heard it was funded by the state. Sell it off and returns the funds to the taxpayer.
Joined: Jan 2006
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From: Sydney Australia
As seen in the Bonza auction, the only real assets had been computer equipment, staff uniforms, some whiteboards, and a whole bunch of iPads.
Rex should have some stairs and chocks as they did in-house some ground ops. I am sure Virgin have already got its hands on the spare parts inventory.
I don’t know the status on the simulator? Last I heard it was funded by the state. Sell it off and returns the funds to the taxpayer.
Rex should have some stairs and chocks as they did in-house some ground ops. I am sure Virgin have already got its hands on the spare parts inventory.
I don’t know the status on the simulator? Last I heard it was funded by the state. Sell it off and returns the funds to the taxpayer.
Joined: Jan 2019
Posts: 337
Likes: 82
From: Australia
From Australian Aviation:
The deal, as reported by The Australian Financial Review, would give the government a bigger say in the ultimate fate of the collapsed airline, and comes after it provided Rex with an $80 million funding injection to keep flying as administrator EY Australia works to make a sale.
Rex entered voluntary administration at the end of July, with estimates it owed around $500 million to 4,800 creditors after its failed venture into competing with Qantas Group and Virgin Australia on domestic jet operations.
The government has since propped up the ailing carrier, including by guaranteeing its regional bookings and preserving its slots at Sydney Airport.
As the largest creditor, the government – which has made it clear it does not want the airline to fail – would have a stronger voice in whether Rex is ultimately liquidated, returned to its directors, or placed under a Deed of Company Arrangement (DOCA) to stay operational.
The reports come as Rex and its administrators face a fresh legal headache, with corporate regulator ASIC announcing this week it was taking the airline and four of its directors – including former executive chairman Lim Kim Hai and his successor as chairman, John Sharp – on allegations of misleading the ASX.
If it goes ahead, the government’s move on Rex’s debt may also be a step towards taking an equity stake in Rex, which numerous voices, including the Transport Workers’ Union (TWU), have urged the government to do, particularly in the wake of the ASIC announcement.
“Though legal matters will take their course, it is crystal clear we cannot let Rex fail, and the Federal Government must step in with an equity stake to get this airline back to where the community needs it to be,” said TWU national secretary Michael Kaine.
“There is overwhelming public support for the Federal Government to step in and intervene with decisive action to save hundreds of aviation jobs, as well as critical regional Australian business, tourism, healthcare and community services.”
EY Australia has been unable to find a buyer for Rex’s regional operations since the collapse in July; however, it has sold aeromedical division Pel-Air to Japan-owned Toll Aviation and is reportedly looking to sell Rex’s flight school in Wagga Wagga.
Both PAG and the administrators declined to comment to the AFR, and Transport Minister Catherine King’s office has also been contacted.
GOVERNMENT MAY BUY OUT LARGEST SHARE OF REX DEBT
written by Jake NelsonDecember 12, 2024The Federal Government is reportedly planning to buy out investment firm PAG as Rex’s largest creditor.The deal, as reported by The Australian Financial Review, would give the government a bigger say in the ultimate fate of the collapsed airline, and comes after it provided Rex with an $80 million funding injection to keep flying as administrator EY Australia works to make a sale.
Rex entered voluntary administration at the end of July, with estimates it owed around $500 million to 4,800 creditors after its failed venture into competing with Qantas Group and Virgin Australia on domestic jet operations.
The government has since propped up the ailing carrier, including by guaranteeing its regional bookings and preserving its slots at Sydney Airport.
As the largest creditor, the government – which has made it clear it does not want the airline to fail – would have a stronger voice in whether Rex is ultimately liquidated, returned to its directors, or placed under a Deed of Company Arrangement (DOCA) to stay operational.
The reports come as Rex and its administrators face a fresh legal headache, with corporate regulator ASIC announcing this week it was taking the airline and four of its directors – including former executive chairman Lim Kim Hai and his successor as chairman, John Sharp – on allegations of misleading the ASX.
If it goes ahead, the government’s move on Rex’s debt may also be a step towards taking an equity stake in Rex, which numerous voices, including the Transport Workers’ Union (TWU), have urged the government to do, particularly in the wake of the ASIC announcement.
“Though legal matters will take their course, it is crystal clear we cannot let Rex fail, and the Federal Government must step in with an equity stake to get this airline back to where the community needs it to be,” said TWU national secretary Michael Kaine.
“There is overwhelming public support for the Federal Government to step in and intervene with decisive action to save hundreds of aviation jobs, as well as critical regional Australian business, tourism, healthcare and community services.”
EY Australia has been unable to find a buyer for Rex’s regional operations since the collapse in July; however, it has sold aeromedical division Pel-Air to Japan-owned Toll Aviation and is reportedly looking to sell Rex’s flight school in Wagga Wagga.
Both PAG and the administrators declined to comment to the AFR, and Transport Minister Catherine King’s office has also been contacted.
Thread Starter
Joined: Dec 2001
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From: Melbourne
Also, a bigger question should be why the **** is this Labor government saying “we don’t want to see Rex fold” and giving them $80m and all of that.
Are they not aware that Rex is a major donor to the LNP?
Which means any resurgent Rex with a new buyer may resume those donations to the Coalition which would then obviously be used by the Coalition to defeat/destroy the ALP. How is this not a case of the ALP shooting themselves in the foot?
It is in the ALP’s interests for REX to fold and then work with other carriers to ensure all affected regional routes remain active.
Why on earth would the ALP seek to actively work against their long-term interests by propping up a Coalition donor? This is equivalent to the ALP hypothetically giving free money to News Corp or Gina Rhinehart.
Are they not aware that Rex is a major donor to the LNP?
Which means any resurgent Rex with a new buyer may resume those donations to the Coalition which would then obviously be used by the Coalition to defeat/destroy the ALP. How is this not a case of the ALP shooting themselves in the foot?
It is in the ALP’s interests for REX to fold and then work with other carriers to ensure all affected regional routes remain active.
Why on earth would the ALP seek to actively work against their long-term interests by propping up a Coalition donor? This is equivalent to the ALP hypothetically giving free money to News Corp or Gina Rhinehart.
In the last reported figures, REX declared donations (usually free flights rather than cash) of $76K to National Party, $34K to Liberal Party and $21K to Labor Party. These figures are hardly massive compared with other donors to all major parties and so called independents. In comparison, QF donated (mostly free flights) $370K to the failed YES campaign. QF have not donated excessively directly to parties for elections preferring to use the Chairman Lounge "perk" as their way of buying influence.
Joined: May 2016
Aviation Qualifications: PPL
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From: Sunshine Coast
From Australian Aviation:
The Federal Government is reportedly planning to buy out investment firm PAG as Rex’s largest creditor.
...
GOVERNMENT MAY BUY OUT LARGEST SHARE OF REX DEBT
written by Jake Nelson December 12, 2024The Federal Government is reportedly planning to buy out investment firm PAG as Rex’s largest creditor.
...
Then there's the matter of dealing with PAG. Two of their directors are already on the hook for allegedly failing to comply with one of the most basic requirements for a publicly traded company in this country, specifically continuous disclosure. Further, there is a lot of murky water around PAG's machinations in the run up to the appointment of administrators, which includes exclusive meetings between PAG and the soon-to-be-appointed administrator, EY.
Frankly, the notion that the government would see to it that PAG walks away from this debacle having been made whole on their investment while other creditors such as regional councils and local service providers are looking at cents on the dollar, is offensive to say the least.
Apparently other regional operators have indicated some interest in taking on some of the routes operated by Rex but they currently lack the capacity to take on the additional work. I don't know why government wouldn't want to support a process whereby routes operated by Rex were parcelled out to some of the other players together with commensurately sized grants and/or low-to-no interest funding as a ramp-up/transition-of-service subsidy. You could probably have all of the centres that were previously serviced by Rex adequately covered by different operators within six months or so.
If nothing else, moving regional aviation away from having one ostensibly too big to fail provider would have to deliver some benefit.
Joined: Jan 2019
Posts: 337
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From: Australia
You have to wonder about the process and mindset that would lead the government to that decision. It is pretty clear that there is no commercial interest in Rex's regional operation, even at the sort of discounted purchase price expected when buying it out of administration. That should speak volumes.
Frankly, the notion that the government would see to it that PAG walks away from this debacle having been made whole on their investment while other creditors such as regional councils and local service providers are looking at cents on the dollar, is offensive to say the least.
If nothing else, moving regional aviation away from having one ostensibly too big to fail provider would have to deliver some benefit.
Joined: Apr 2002
Posts: 569
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From: Accruing MilliSiverts
Government should buy the damn thing for a pittance, get rid of the directors, guarantee regional ops AND resume capital city ops to finally keep Qantas on its toes.
The old adage, with some merit, was governments have no place running businesses.
But it would seem that the only people privatisation has benefited are the executives and chairman’s lounge pass holders.
The old adage, with some merit, was governments have no place running businesses.
But it would seem that the only people privatisation has benefited are the executives and chairman’s lounge pass holders.
Last edited by tail wheel; 16th December 2024 at 17:23. Reason: Language!
Joined: Jan 2006
Posts: 2,535
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From: Sydney Australia
I dunno? The AFR article is repleat with speculation, but with zero evidence to back it up.
one of the numerous scenarios put forward by Jake Nelson is the payout of the debt owed to PAG (presumably north of $150M) and a possible handing back of the reigns to the criminals who are responsible for this mess in the first place.
Speaking of paying off PAG and sending them on their way, would this be to fend them off from forcing the liquidation? They sure as sh!t won’t go quietly and simply write it all off as a bad call. And what about all the other creditors owed around $350M? Is the government going to bail them out as well?
So much BS going on here it really is becoming quite foggy.
one of the numerous scenarios put forward by Jake Nelson is the payout of the debt owed to PAG (presumably north of $150M) and a possible handing back of the reigns to the criminals who are responsible for this mess in the first place.
Speaking of paying off PAG and sending them on their way, would this be to fend them off from forcing the liquidation? They sure as sh!t won’t go quietly and simply write it all off as a bad call. And what about all the other creditors owed around $350M? Is the government going to bail them out as well?
So much BS going on here it really is becoming quite foggy.