Air South
Join Date: Sep 2009
Location: Gawler
Age: 70
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The C404 is perfect for KGC
but apparently they have won a recent tender of some sort that will give them s
t loads of cash, so the KGC run doesn't see very attractive anymore
but apparently they have won a recent tender of some sort that will give them s
t loads of cash, so the KGC run doesn't see very attractive anymore
Air South ADL
Join Date: Dec 2007
Location: Oombi
Age: 42
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Sorry Chadzat but you cannot blame rex solely for the Airsouth pull-out from Island. Thats a little over the top. With respect i think other factors contributed such as the local community and maybe the product being offered compared with the rex product. Certainly rex probably added to the difficulty on the route with more than likely some form of predatory action but at the same time Airsouth isn't the first to try to contend with Kendall/REX on this route and have failed. It was always going to be difficult unless there was great support from the locals both in terms of residents and tourist businesses.
FMC.
FMC.
Last edited by Flying Meat Cleaver; 22nd Oct 2009 at 10:59.
Join Date: Jul 2009
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Rex, the good guys???
FMC, you make interesting statements, most of which are regretably true.
The simple facts are, as pc12togo and Chadzat so eloquently put them.
Market forces were at play here and Rex had the deepest pockets (and, to be fair, superior service) but to bring the other factors such as market support and offer them as to soften the 'Bad Rex' angle is plain BS.
As pc12togo stated, watch the fares go up now. Classic play.
Youre not a Rex flunky perhaps??
The simple facts are, as pc12togo and Chadzat so eloquently put them.
Market forces were at play here and Rex had the deepest pockets (and, to be fair, superior service) but to bring the other factors such as market support and offer them as to soften the 'Bad Rex' angle is plain BS.
As pc12togo stated, watch the fares go up now. Classic play.
Youre not a Rex flunky perhaps??
Join Date: May 2001
Location: Here today, gone tommorrow
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Bit rude to blame Rex
KI is a little unique, local support is it’s own worst enemy, high volume, low profit, best option is the high yield international market. Problem with that sometimes 90-120 days before the cash flows in.
Rex were blamed for O’Connors demise in part, but interestingly the ADL-WHA fare where they competed were similar to the ADL-PLO (similar distance) no competition. Rex haven’t had significant fare increases to WHA or MTG once it was their sole route.
I think perhaps the suggestion that MK is redeploying his forces where there is guaranteed (Charter) returns, instead of stuffing with RPT is closer to the mark.
KI is a little unique, local support is it’s own worst enemy, high volume, low profit, best option is the high yield international market. Problem with that sometimes 90-120 days before the cash flows in.
Rex were blamed for O’Connors demise in part, but interestingly the ADL-WHA fare where they competed were similar to the ADL-PLO (similar distance) no competition. Rex haven’t had significant fare increases to WHA or MTG once it was their sole route.
I think perhaps the suggestion that MK is redeploying his forces where there is guaranteed (Charter) returns, instead of stuffing with RPT is closer to the mark.
