when you say

when you want to fly to SYD, the routes Rex currently flies don't have much competition except for likes of ABX & DBO to SYD & probably some others. Virgin won't be flying ABX/SYD anymore unless Alliance does for them using F50/70/100 or E190.

ex the ASX: Rex Signs Binding Agreement with PAG on Funding......
 

REX- ASX announcement (19/11/20) link here: https://cdn-api.markitdigital.com/ap...df02a206a39ff4

A brief extract:

Subject to Shareholder and FIRB approvals, etc.

rgds
S28- BE

That is because REX usually runs away from competition. It is going to find the rough and tumble world of mainline operations very hard and will lose millions along the way. I wish the employees of REX all the best but if they try to make you take shares in lieu of salary...DON'T!!!

What makes you think that REX would try that on? There is no history of that.

think Rex will take market share on golden triangle mostly off qantas.

Chief of ANZ said few days again, that recession will really kick in middle of next year when no more jobkeeper/jobseeker & dole returns to previous levels. Even jobmaker is only $200/week maximum for those of certain age.

Like July? https://australianaviation.com.au/20...-orange-route/

QF will use a classic pincer movement from both QF mainline and JQ to make life exceedingly difficult for Rex. Rex has chosen a market position where it is poorly differentiated and only has price to trade on. This is a very dangerous position to be in. If I'd been them, I'd have gone the ULCC route which maybe unfashionable but is currently unoccupied.

Im all for REX giving it a go, but when things get tough, I don’t see QF losing.

Yep.

Fuel jumps, Rex sinks. Tiger had SIA to cover these issues when fuel went to $130 a decade ago, QF and VA had profitable cores to offset.

Rex hasn’t really got anything. It’s not like they can raise prices or chase corporate contracts off the opposition.

Don’t be so sure. Post Covid the Qantas and Virgin experience on say Melbourne to Sydney won’t change at all. The only thing Virgin is doing is dropping the free snack. It’s not changing it’s lounges, baggage, or frequency. Don’t underestimate the power of those two on the triangle. I would be very mindful reading into the Virgin fear that has been spread into the market from various uninformed experts and competitors. That’s what Rex wants to believe, reality will be different. Alan and Jayne are ruthless operators who won’t let some token operator like Rex get in their way.

Rex might get the Tiger traffic. They might perhaps get some Jetstar traffic should they bother to update the website, FF program and IT. However that costs money.

In their press release Rex say,
Is that a realistic timetable?

Seems tight. Tiger had 8 weeks on the ground with the aircraft here and 6 months of prior planning. It was pushed back a touch due to tight timing. Yes we are not talking about a new airline here, but they don’t have any jet foundations in place.

I guess this whole thing is essentially Virgin processes etc, and people involved, already familiar to CASA. I’d be interested to know how much of this is from Virgin’s book.

They wouldn’t be the first to not get it on the first go. Only one has successfully managed to get the green light on the first go. Looks like they have plenty of wriggle room until ops start.

Thanks for that.

Given that certification is just one of many workstreams associated with the starting commercial jet ops in about 100 days time it would be interesting to know who Rex has got managing this at a program level. This is probably two orders of magnitude more complicated and more complex than anything Rex have had to deal with in the last decade or so.

I assisted the Tiger startup, getting up and running is one thing, however the biggest challenge is maintaining that standard, things started to crumble about 12 months in, and well, caved in, 24 months in, as we all watched on. The problems started to appear when the fleet creeped up, and good people starting leaving. Company underinvested in the training department, which couldn’t handle the fleet and people increase.

I note some from Virgin only went over on temp contracts. If/When all these people start to leave, which is common in any new startup, usually about 2 years in, can the place follow the book as good as it did on day 1?

The training and safety departments are going to be super busy. When does the ATR start arriving? I hope Sharp is ready to invest in his Pilots. Otherwise the whole place will fall over and safety bureau will be super busy.

Didn’t help when the experienced people that did remain were sidelined and ignored. A plan was in place to fix the situation in HQ but that was also ignored.

Cest la vie!

That place went down the ****ter once Ken retired. They deserve everything they got and the only ones who would disagree would be those poms.

Beyond me how it ever got as far as it did.

'That' Statement (above)- right there, 'Is' where the rubber shall meet the road.......

Too much 'Copy & Paste'- then, Good Luck.....???? (and Go 'the Sharpie'...!!!!!.)

rgds all
S28- BE

Tiger tried copy and paste with their 737’s using Virgin procedures, CASA said no

ex the ASX- 52x Week's.....
 

52x Week range: Last at: $1.59........

90 Day Graph here: https://www2.asx.com.au/markets/company/REX

Blow that sucker (graph) out........, IS All Good- get, On-Board !!!!, at speed, 'Apparently'..........

Ya just Gotta 'Lurve' & 'Appreciate'- this Werk/Gig, reckon!!!!! or Not?????

rgds all
S28-BE

was also wondering how the ATR introduction was going 🤔

I understand the CASA proving flight to add the B737-600/700/800/900 to the Rex AOC is scheduled for Wednesday 02 December.