New Airline to Compete with REX
 

Hi Does any one have any info on the new Regional airline that is taking on REX at some regional ports. refering to the artical in fridays daily telegraph.

REX Albury competition
 

Recently announced in local media, a proposed start up on the Albury Melbourne route. Can anyone throw some details here on this? At a time when REX morale, and public sentiment is looking at options for travel, could this be a goer?

Maybe this is what they referring to? Challenge to Rex's bush rule | thetelegraph.com.au

Oh no!!!

Now other airlines are "poaching" their customers..... How rude.

Quick, blame someone else.

Presumably the same operator is behind news of a Dubbo to Melbourne experiment via either Albury or Griffith.

New airline taking flight to Melbourne | Daily Liberal

Presumably they have done their sums, whoever they are....

From the attached article,

"departure to Melbourne at 7am, arriving at 7.40am"

40 mins from Griffith to Melbourne, "tell him his dreaming"

Block time from Wagga to Melbourne is 1 hour 15, so there is no way Griffith to Melbourne will be less, even in a jet!

Aren't they already there running ATR's ??

New airline to run a "small jet" between Broken Hill and Mildura to Sydney from October. Mildura to Melbourne down the track. This from local Media. Sounds like Virgin E190 to me.

SN

Could be Qantaslink with their new A319 regional jet! :E

Hhmm,

As suggested in another thread could the source of this rumour be "JetGo", looking for another way to make a smaller fortune out of aviation by attempting RPT with their under utilized EMB RJ?

Why not give it a shot as their livery is almost the same as a REX SF34. What do they have to lose as it seems JetGo has both magical fixed and direct operating costs, which enables their EMB RJ to consistently operate for less than a regional turboprop!!

Publishing an RPT schedule and hoping sufficient passengers book to firstly cover costs and then hopefully turn a profit is a very different proposition to a closed charter. Perhaps this is why Aeropelican/Brindabella after very recently announcing their alliance/merger, then informed the market/industry of their RPT rationalisation in order to provide more turboprop resources to service an increased demand for charter capacity.

Time will tell soon enough whether JetGo intend to wave their magic wand again and this time as an RPT competitor!

The Oracle

From BHI newspaper;

The company behind the plans is an existing small airline which would announce details within a fortnight. The new service will run from BHI to SY VIA MIA. Plans for ML are also in the making and in its final stages of CASA approval. 2 flights per day allowing passengers to be in SY by 9am. It would be a regional jet with a baggage allowance of 25kgs per pax. The launch of the service would be directed by marketer Sean Cummins who is was responsible for VB promotions.

SN

How could JetGo manage the upcoming Bill Peach Aircruises and a prospective new RPT operation? SMH's AirCruising ad 2-3 months ago included the JetGo 145 image, this w/e the ad only references a 'private Embraer jet'.

Logically, one imagines the arrival of another airframe(s) is not far away and the expansion will continue. Its wise though to be careful & not try to be everything to everyone.

If the biz plan does actually specify expansion into RPT right now, by crikey the marketing budget will need to be very substantial & the head of sales and marketing will need to be really first class! Just how or where they would have a comparative advantage in regional RPT I'm not sure?

The flying bit will be the easy part & at least they are having a go. Its essential though that its remembered there are obligations that go with the opportunity to start a business in Australia. Aviation does not have a good track record in that regard.

The NSW E145 RPT is not JetGo. New investors in SYD...

and now we're onto the E145, sky air world? Or as jet go said in last months aus aviation they have "studied" sky air worlds mistake and will not go down that ally and attempt north qld RPT...good luck!

Lester,

I think your argument is very sensible regarding REX's abilities as a regional competitor.

However, if you read REX's half and full year results carefully, they actually had $90+ Million sittting in the bank (retained earnings) after the last half, as well as a $20 Million currrent account to pay all their routine outgoings.

Due to REX's financial strength they could easily afford to operate any aircraft type that suits their regional aspirations. Saabs make sense to them as Saabs have made their profits, from which they have regularly paid fully franked dividends to shareholders and in the future I expect their aircraft types may change as they adapt to any significant and long term changes they perceive taking place in those markets.

As always the key to competitively succeeding in business (particularly aviation) is both the quality of your products and service as well as your financial ability to compete with a new operator attempting to contest your existing markets.

The Oracle

even harder without pilots to fly em

bb,

An astute observation that goes to the heart of everything to do with REX at the moment.

The Oracle

Any further news of this new start up?

Yeah I heard some GA company going to start running Chieftains to compete against REX, pay and conditions substantially better also.

It's jetgo confirmed on friday