The problems in the NSW network (and the rest) are nothing to do with the age of the aircraft. The product is sound, the execution, particularly in regard to staff retention and parts sourcing is the downfall. The SAAB under a strong maintenance program has at least another 10 years of profitable service life, there is no vice in its engineering as yet that will increase its costs significantly other than poor operator choices.

The big problem may come when SAAB actual pull the pin on support, however if this also coincides with a savvy third party wanting to buy the rights to the aircraft and do what is being done with the Dornier then it could also be a good thing. We've seen the ex Dornier models like the 228 continue under HAL and now the 328 coming back to life in a modernized package.

Considering the flexibility of the SAAB airframe to be tailored to anything between 30 and 70 seats with fuselage plugs and systems already designed for high speed flight as per the 2000 it would be more competitive than the Dornier, with a tested history of solid build quality that lasts.

REX has announced a trading halt pending a further announcement.

https://cimg0.ibsrv.net/gimg/pprune....956dc7589.jpeg

REX AIRLINES Trading Halt
 

And the only way that some Rex board members can do that is because they also hold executive management positions, contrary to the relevant ASX guidance.

Maybe Lim shouldn't have bad-mouthed Deloitte when VA went into administration.. Here comes the bus
https://www.afr.com/companies/transp...0200506-p54qb3

"Originally when it was first announced that Virgin was going into administration we were quite interested because we thought the period of administration would be a wonderful opportunity to really, in fact, make really deep-seated changes to Virgin," Mr Lim said in an interview with The Australian Financial Review. "But when the administrator from Deloitte started making his public comments I very quickly realised that the administrator has no intention at all of really effecting any fundamental changes. "It would appear from his timeline that he just wants a quick sale and he actually leaves the problems to the buyer to solve."

Karma, you've got to love it. Sometimes slow on delivery but generally worth the wait.

Regrettably, there's the collateral damage.

The non financial media (ABC) is picking up the story of the trading halt. 35 cents a share anyone?

That does not sound good.

The sad part is that a lot of very good people rely on their wage from Rex to pay their mortgage, car payment, grocery bill and school fees.

Meanwhile the directors will walk away cashed up and the nasty wet tram ticket flogging from ASIC.

This could get ugly very quickly. Once the general public start hearing about share suspensions and financial strife on the 6PM news, they will stop booking and, as you can see from REX's accounts, its entire cash balance is represented by Unearned Revenue related to tickets sold but not yet used. Without forward bookings, the cash drain will turn from problematic to fatal within weeks.

Even that paragon of journalist excellence Channel 10 has a story.

Comments on the story are ugly from a forward booking perspective.

Sorry to see this result. Speaking from bitter personal experience losing your income, even briefly, can trigger all sorts of bad outcomes. I hope the Rex staff look after each other in the weeks and months to come.

I really wish Kaine would refocus and stop blaming the competition for the collapse of these carriers. You have Tim Jordan types with fantasy models and here we simply have the Singapore lunatics. I know Kaine is well aware re the incompetence that resides in our carriers, he has continued to sledge Alan, but Tim and LKH have apparently done nothing wrong and are victims due to Vanessa and Jayne.

So is Rex the whole airline may be going under? I thought it was only to do with their B737 services?

I thought their Saab 340 services were going not too bad. Their 737 services...the loads haven't been good?

They are now saying on the 5pm news here in Perth…administration by the end of the week!!! Is this actually likely?

I love how it’s reported that it’s the other airlines fault for Bonza and Rex. Don’t ever blame the people running these company’s couldn’t possibly be them.

Surely not???? Seriously??

Fantastic news! Be gone with these Rex clowns. Watch the finger pointing and blame game begin, Its time to hold John Sharp the face of the business and Neville Howell the CEO accountable. First, hunt down Lim Kim Hai - a white collar criminal and thief of the Australian tax payer and banish him from operating a business in Australia.

They need to make the hard (and embarrassing) decision to pull the pin on the jet operation.

If they do something about canning the jet op and rapidly then they may be able to salvage themselves by focusing on what has been a reliably profitable regional op.

For good measure they could also hold out the Rex charity hat asking for a massive government handout to save regional Australia from losing their 'vital' air service. The government wouldn't want the headache and fallout from not saving the regional operation because lets face it, it's kind of the only half reliable connection much of regional/remote Australia has to the rest of civilisation.

Not the most thoughtful thing to say given the jobs of so many people on the line - including some of my mates.