ASIC sues Rex for allegedly misleading the market on company's profitability

[nonrev-jez]

Good to see those responsible may actually be held accountable for some of their actions.

ASIC sues Rex Airlines, alleging company misled market on profitability

 

[Saab34]

I think I we spent the whole of 2022/2034 on here banging on about Rex and it’s poor loads and questionable monthly ‘unaudited’ results.

No surprises really. They have been withholding important information for considerable time. Many on here didn’t get fooled.

 

[HS-TQE]

I do remember some on here and elsewhere across social media predicting that REX "will get VA" despite the documented poor loads on REX and questionable REX financials right up till the end and and subsequent close-down of REXJet.

Although VA has their own various problems which include recurring staff contract negotiations, those REX 'predictions' aged well indeed.

 

[jakeseven7]

Good to see those responsible may actually be held accountable for some of their actions.

ASIC sues Rex Airlines, alleging company misled market on profitability

This really needs its own thread!

Dodgy brothers….

 

[MEL_Traveller]

Ha! I was just thinking about this a couple days ago. Forget telling the market… what about telling the consumer?

We put money into the airline, got status, and then had it ripped away, losing all our benefits and miles in the process.

From my reading of Rex’s financial statements, it appeared that while the 737 ops might not have been profitable, the business as a whole was, and that the jet operations would be somewhat secure. They even launched a service to Perth!

All very nice that ASIC will sue directors… I wish the passengers could! I sue the directors for the value of my points.

 

[eastwest101]

Ha! I was just thinking about this a couple days ago. Forget telling the market… what about telling the consumer?

We put money into the airline, got status, and then had it ripped away, losing all our benefits and miles in the process.

From my reading of Rex’s financial statements, it appeared that while the 737 ops might not have been profitable, the business as a whole was, and that the jet operations would be somewhat secure. They even launched a service to Perth!

All very nice that ASIC will sue directors… I wish the passengers could! I sue the directors for the value of my points.

I remember at the time post-Covid travel boom and Virgin, Jetstar and Qantas were self-imploding with lost baggage, lack of staff, huge check-in queues and lack of planes and mass flight cancellations domestically, and yet Rex still couldn't get off their butts and market themselves despite their competition self-sabotaging in front of their eyes. I recall some posters on here seeing Rex B738's take off half empty with terminals heaving with disrupted Qantas, Jetstar and Virgin passengers. Someone could have walked through T2 in SYD with a sign hung around their neck saying "flights to MEL leaving in 1-2 hours on-time with free baggage for $300". A few enterprising members on here cancelled their delayed QF VA or JQ flights and got last minute Rex jet flights but people are peculiar and sometimes get mentally anchored/tunnel vision with existing flight bookings and relationships to existing airlines.

With less psychotic top management and a decent marketing department, I think the actual front-line Rex staff and the airline would have been able to pull it off in that brief window when all the other airlines were self-destructing. Just goes to show bad/incompetent management can destroy any business no matter how good the economic tail-winds.