RexJet = EJet

MickG015
 

"​​​​​​... lessors willing to provide $AUD30 million for 15 of Rex's fleet of 60 unencumbered Saab 340 aircraft ..."

I think you may have stumbled across someone's cunning plan. If what someone else said is correct ( value 700k each) and they get financing for 30m, what's the likelihood that the financing is done via a tax haven and the inflated lease costs are sucking up a large slab of any profit tax free.

er Yep to the jungle jet
!

There is something decidedly odd going on there, let's just put it that way.

There is nothing odd. To start with, stop mixing up Australian and US dollars. AUD 30m is just USD 20m. Second, Saab340B/B+ in serviceable condition depending of the engine status is valued in between 1,2 to 2,0m USD. Thirdly it is not that much Saab airplanes valued as collateral but rather a chance to loan to someone with a strong record (save for covid).

Not too “Sharp” are you ?

So Tangan, your saying that Mr Sharp has only been at REX for half a dog watch ??

I think you’re getting your Sharps mixed up!

John Sharp has never worked for Virgin. He's a former politician - left politics in 1998, has been tied up with Rex as their Deputy Chair since 2005.

I think you’re getting your John’s and Rob’s mixed up! :ok:

Yes, I did get my Sharps mixed up. :\

Can you provide some evidence for those values you quote. Mate flying regional jets reckons F100 / Bae are only worth around the 1m mark, so how does a 34 seater, which is around the same vintage come anywhere near the 2m USD mark?

Re the bolded sentence. It's a sell / lease back isn't it? So buy a/c with limited market demand and get their return via lease costs. You'd want a high return to justify the risk. The "lendee" then uses that money to enter a highly competitive RPT environment against established players; what could go wrong! I also think that the argument about the flow on from Rex's regional services is way overstated. Not saying it won't work, but it will be bloody difficult to pull off. I'd put my money on Bain & QF, not Rex. Not saying it will fold, just doubt it'll be that successful.

The Virgin ATR's?
Hevilift Australia - operate one or more, established operator, AOC, if time are quiet could always move one or more to PNG, where they are an experienced ATR operator, albeit different model.
Regional Express - would need to upgrade the AOC to high capacity or comply with new Reg coming in around December. Plenty of experienced flight crew to assist with T&C qualifications. Would need access to SIM
Qantas - Never, they have a very successful Dash 8 operation, don't need another type in the fleet 80 knots slower than a dash 8-400. Would need access to SIM
Sharp Airlines - possible contender, very astute businessman, could run a nice Adelaide, Mt Gambier, Portland, Warnambool, Melbourne, Canberra, Sydney scenario. Would need access to SIM
Pionair - too much on their hands with Kiribati E190, SIM required
New start up operator - Not likely, CASA has advised that the new Regs and December workload make this impossible before mid next year. Would need access to SIM

Not sure where the closest or most practical ATR Simulator is but Covid will make travel impossible unless in Australia.

..

https://www.aircraftcostcalculator.c...60/Saab+SF+340

There's an ATR -600 sim in Brisbane.

Er, the leased BA 767s all arrived in mid to late 2000.

REX/ATR MEMORANDUM OF UNDERSTANDING

Could be REX playing the marker, but ATR seem reasonably convinced.

Yeah nah! F100 / RJ85 (no RJ100 info) is 6.5m & 7.0m. So my guess is the 2 odd m quote for the saab is rubbish. You won't pay anywhere near the figures they quote for the f100 / RJ.

A quick search on controller.com should help you correlate your mates figures...

All in AUD:
$4-5 million for a Dash 8-100
$300,000 for a Jetstream 31
$1-1.2 million for a Jetstream 32
$1.6 million for a Jetstream 41
$950,000 AUD for a Metro III

So given the above, $2 million AUD for a SAAB seems reasonable to me. The bank has 60 to choose from, you can bet they didn’t pick the oldest airframes. They’ll have finance over the newest and lowest flight time examples.

Alliance got an amazing deal when they bought 21 Fokkers for $15 million USD. But I’d argue that was back when the Fokker wasn’t in such high demand. I’ll bet you couldn’t buy one today for anything like $1M....

2 Mill for a clapped out Saab?? You should be selling used cars champ :ok: You may want to ask someone from Network or Alliance about the 7 mill F100s, I'm sure either of them would sell you their entire fleet for less than 5 mill each.
Priceless :}