- Joined
- Aug 21, 2011
- Posts
- 15,818
- Qantas
- Platinum
- Virgin
- Platinum
- SkyTeam
- Elite Plus
- Star Alliance
- Gold
Rex has put out yet another media release today accusing Qantas of predatory behaviour in launching flights on various former Rex monopoly regional routes.
Rex says that it has decided to keep operating on routes with new competition from QantasLink, even though they will be loss-making, and due to the losses it will sustain in doing so Rex will apparently have to cease services on five other marginal routes (4/5 of which currently have no competitor) once government funding runs out in March:
According to Rex, other new routes under consideration, which are currently served by Qantas, are Sydney-Tamworth, Perth-Geraldton, Melbourne-Devonport and Sydney-Canberra.
I agree that SYD-CBR would make sense for Rex, since it's basically been abandoned by Virgin and still has lots of traffic. But I can't see Rex launching flights to Tamworth after saying in a press release last September that
"cities, such as Tamworth, which insist on charging security screening charges on carriers not legally required to be screened, will not be considered.”
Basically, it looks to me like Rex is now trying to hold five regional routes hostage as a political weapon to force the government and/or ACCC to either extend the RANS funding or take action against Qantas. This could get interesting.
Rex says that it has decided to keep operating on routes with new competition from QantasLink, even though they will be loss-making, and due to the losses it will sustain in doing so Rex will apparently have to cease services on five other marginal routes (4/5 of which currently have no competitor) once government funding runs out in March:
- Sydney-Bathurst
- Sydney-Cooma
- Sydney-Lismore
- Sydney-Grafton
- Adelaide-Kingscote
According to Rex, other new routes under consideration, which are currently served by Qantas, are Sydney-Tamworth, Perth-Geraldton, Melbourne-Devonport and Sydney-Canberra.
Rex to cut routes in face of Qantas ‘intimidation’
Qantas has hit back at Rex’s accusation of predatory behavour, saying the country airline is ‘throwing a classic Rex tantrum’.
www.smh.com.au
I agree that SYD-CBR would make sense for Rex, since it's basically been abandoned by Virgin and still has lots of traffic. But I can't see Rex launching flights to Tamworth after saying in a press release last September that
"cities, such as Tamworth, which insist on charging security screening charges on carriers not legally required to be screened, will not be considered.”
Basically, it looks to me like Rex is now trying to hold five regional routes hostage as a political weapon to force the government and/or ACCC to either extend the RANS funding or take action against Qantas. This could get interesting.
Last edited: