Rex in voluntary administration, ending all 737 services

[henrus]

Unless I’m missing something they’re no longer selling jet flights tomorrow therefore it’s highly likely they have no intention of operating jet flights tomorrow onwards yet not a single passenger has received any notification the flight may not operate. Would be rather cough to be booked on a flight tomorrow and turn up at the airport with no notification.

 

[Ansett Nostalgic]

There must need to be some ‘default’ event in the contract, or under applicable law for this to happen? I dunno how the lessor would necessarily establish ‘potential’ insolvency to the degree of certainty required to avoid breach of contract.

Something vague like 'material adverse event' could be used.

 

[UP4014]

I find it quite amusing that some people think that QR should be refused extra capacity as they would use it to damage QF.
But when QF uses extra capacity to crush ZL well that’s a good thing.
Remember up thread what happened when QF entered the Albury market. Ended up with ZL cancelling their 3 flights a day to MEL to be now just 1 QF flight a day to MEL in the early morning and I back at night.
So not nearly as good for the citizens of Albury. And also not as good for the people flying into Albury to work such as medical specialists from MEL teaching hospitals to do a days clinic there. Not possible with the service QF provides.So many now have to fly to MEL to see their specialist.

Many city folk have no idea what the services that ZL offered meant to country folk.

QR were only refused extra capacity into specific airports. REX didn't use its slots well by trying to take on 3 larger airlines already in the same competing market.

All the various levels of Govt need to offer the exclusive subsidy REX received to another airline. I do agree country people used, enjoyed and relied on REX on certain routes and is the same as when you lose a public country train service, if you don't use it enough it's taken away.

It goes back to the REX senior management, I'd be interested to know did anyone at REX speak out against a jet expansion into a market where any of the players could discount and cut REX out.

 

[serfty]

Now, not only does Albury get QF flights to Sydney and Melbourne, truly connecting it with oneworld and the world, they also get QF jet service from Brisbane. In fact, Albury is the only airport in inland NSW to get jet service.

Rubbish! As indicated in the referred post, the single QF service prevents day return travel to ABX whereas with the prior three REX services a day this was possible.

 

[airlinemn]

It is really just sad that QANTAS reputation (and it still is so strong despite what everyone says) prevents anyone else from thriving in the market. IMO, you can’t really fix this. That’s just a fact of life nowadays. VA tried and failed (they haven’t thrived since their first few years)

I am also guilty of this when travelling for work. I always book with QF even if they are double the price and provide little to no extra service. I know pretty much everyone else does the same.

REX never really stood a chance.

 

[justinbrett]

Rubbish! As indicated in the referred post, the single QF service prevents day return travel whereas with the prior three REX services a day this was possible.

It does allow return travel ex ABX, which would be the greater demand.

It also allows ABX pax to travel seamlessly to other domestic and international destinations, without the heavily restricted baggage allowance of Rex.

 

[drron]

Actually, Albury citizens are reaping the benefits.

When ZL dominated Albury, it was 3 flights a day to MEL on an ageing Saab 340.

Now, not only does Albury get QF flights to Sydney and Melbourne, truly connecting it with oneworld and the world, they also get QF jet service from Brisbane. In fact, Albury is the only airport in inland NSW to get jet service.




Australia’s domestic aviation industry is a free market, unlike international aviation. Welcome to capitalism.

You just don’t understand do you. I would think that most of the Albury community would prefer 3 services a day on an aging Saab than 1 service a day on a nearly aging Dash 8.

They have lost some of the medical services they used to enjoy. If they want to see family in hospital in Melbourne they have to leave at sparrows rather than having a choice of 3 different services.
You have obviously no experience living and working in a rural or regional area.

 

[RSVKanga]

You just don’t understand do you. I would think that most of the Albury community would prefer 3 services a day on an aging Saab than 1 service a day on a nearly aging Dash 8.

Albury does not get "one Qantas Dash 8 service a day".

It gets about six Qantas flights a day. One of which is a jet service to Brisbane, with the remaining being SYD and MEL flights on Dash 8's which are considerably younger than ZL's S340s.

Also, I doubt many people fly only between Albury and Melbourne when there are modern, reasonably fast V/Line Vlocity trains that operate at a frequency of seven daily services from Albury city centre straight into Melbourne CBD. If anything, V/Line is more responsible than Qantas for Rex's irrelevance and withdrawal in Albury, and that's a good thing.

Even with V/Line, people still fly the route, but the thing is people still flying ABX-MEL really only use that route for connections these days. The reason why QF succeeded on that route and replaced ZL is because QF offers seamless connections to and from over 60 domestic destinations as well as their international network and oneworld/partner airlines.

 

[RooFlyer]

Proportionally per number of staff and number of seats, Rex got significantly more in hand outs from the gov than Qantas did. I agree that they shouldn’t get a hand out due to a failed experiment.

I agree, but there is the travelling public on the remote and regional routes to think about. Air services to these would almost be considered an 'essential service' - certainly for people needing specialist medical services.

I've never paid much attention to REX; they did come to HBA but never in my sights. However they also fly into King Island, Burnie and Devonport and the ABC talk back this morning was alight with concerns that REX would fall over and stop flying there. Of course, Qantas came in later to Burnie and Devonport and REX had to cut some services. That might sound familiar to some - ABX? It was amazing how many of the talk back callers used the phrase 'Qantas gouging' while expressing their concerns about REX possibly failing.

Australia’s domestic aviation industry is a free market, unlike international aviation. Welcome to capitalism.

Um, except when it comes to QR requesting more access into Australia. Remember? The Assistant Treasurer said Qantas had new fleet to pay off, so QR will not get the extra capacity. Not so free then, eh?

 

[Saab34]

The failure here is purely due to LKH and JS.

Why is QF and VA copping the blame here? Go back over the Rex thread, we have been reporting record low loads for years. It’s been one of the most poorly executed attempts I’ve ever seen. Remember the single digit loads? They are clueless when it comes to marketing, and they are finishing up Jet ops with 20-30 people per flight this evening.

Rex failed. This is an own goal.

 

[RSVKanga]

Of course, Qantas came in later to Burnie and Devonport.

False information, Qantas has been flying to Devonport long before Rex. ZL only came in a couple of years ago.

Um, except when it comes to QR requesting more access into Australia. Remember? The Assistant Treasurer said Qantas had new fleet to pay off, so QR will not get the extra capacity. Not so free then, eh?

Read the bit that you quoted.

I agree, but there is the travelling public on the remote and regional routes to think about. Air services to these would almost be considered an 'essential service' - certainly for people needing specialist medical services.

I've never paid much attention to REX; they did come to HBA but never in my sights. However they also fly into King Island, Burnie and Devonport and the ABC talk back this morning was alight with concerns that REX would fall over and stop flying there. Of course, Qantas came in later to Burnie and Devonport. It was amazing how many of the talk back callers used the phrase 'Qantas gouging' while expressing their concerns

There are other airlines that fly to King Island, Burnie and Devonport (Qantas and Sharp). It's not like they won't have an air service when Rex collapses. However, if you want to play this card, let's talk about Grafton. Rex abandoned that city a couple of years back and they don't have an air service anymore, and no, it had nothing to do with QF as they don't fly there.

 

[airlinemn]

Why is QF and VA copping the blame here?

Look, I don’t think they are blaming them per se. It is more of a commentary of the Sydney slot system which is a direct result of QF being the most influential lobbyist machine in Australia.

Certainly can’t blame VA (given they themselves haven’t been a thriving company for more than a decade)

I don’t think Rex actually had a terrible strategy. Ultimately, they weren’t going to be successful regardless of what they did.

 

[p--and--t]

Um, except when it comes to QR requesting more access into Australia.

I wasn't aware QR flew domestically.as referred to by the post you were.challenging

 

[RICKDAN]

Basically delivering effective control to the private equity firm PAG as Rex is forced to continue to drawdown on the convertible notes.

Can't imagine LKH has the money to buy them out, so the minute they convert LKH is heavily diluted.

The conversion price is $1.50 can’t see them doing that. More likely they’ve turned the tap off on more money to get a better price. But yes they will take control and it’s probably a good thing as at least they have deep pockets.

 

[drron]

Albury does not get "one Qantas Dash 8 service a day".

It gets about six Qantas flights a day. One of which is a jet service to Brisbane, with the remaining being SYD and MEL flights on Dash 8's which are considerably younger than ZL's S340s.

Also, I doubt many people fly only between Albury and Melbourne when there are modern, reasonably fast V/Line Vlocity trains that operate at a frequency of seven daily services from Albury city centre straight into Melbourne CBD. If anything, V/Line is more responsible than Qantas for Rex's irrelevance and withdrawal in Albury, and that's a good thing.

Even with V/Line, people still fly the route, but the thing is people still flying ABX-MEL really only use that route for connections these days. The reason why QF succeeded on that route and replaced ZL is because QF offers seamless connections to and from over 60 domestic destinations as well as their international network and oneworld/partner airlines.

Of course you knew I was talking about the ABX- MEL route if you bothered to read my posts and there are not 6 QF flights a day on that route.
Having flown into rural and regional areas for 2 weeks to 3 months at a time and also to do a fortnightly clinic I have flown the Saabs and usually the Q200s I never felt there was a great difference.
Now if I was going for a longer period I would fly in the night before and fly out the morning after the job ended. But if I had to do that for a day clinic it would mean spending 2 nights in the town instead of in in the morning and out at night. A very big difference.
And the V line takes nearly 3 hours.

As for domestic airlines services are a free market you are joking aren’t you. Lots of hurdles to enter the market.

 

[RSVKanga]

You have obviously no experience living and working in a rural or regional area.

Well I guess the opposite can be said to John Sharp and Rex.

He and his colleagues have no experience living and working in a metropolitan area, and I think the big "Our heart is in the country" decal on all metropolitan jet aircraft, as well as retaining the childish logo and brand "Regional Express" has alienated any potential customer base for Rex's jet services, which was meant to be the 3 in 4 Australians that live in the big cities. I think it's safe to say that "onboard country hospitality" will not and did not go down well on flights between Australia's two largest cities.

With that extraordinary amount of government aid (proportionally compared to QF and VA) that Rex received during the pandemic, maybe a potential rebrand to Ansett might have just worked. They could have brought Ansett back just like how Ampol was brought back, but no, the 'country' obsession of Sharp and Co have cost them dearly & they deserve to collapse.

 

[RooFlyer]

There are other airlines that fly to King Island, Burnie and Devonport (Qantas and Sharp). It's not like they won't have an air service when Rex collapses.

Use the ABC app to listen to the morning show on 836 this morning and you'll find out what the public on the NW coast think about REX and the alternatives.

As for Qantas starting up to Burnie (population 20,000) in 2021 adding to Devonport (27,000) - there are some additional small towns about - is there anywhere else in Australia that they fly to a destination (MEL) from small airports with tiny population catchments, <80km apart? Why would they do that if not to muscle competitors out?

Sharp doesn't fly into DPO, nor direct to MEL from Burnie I find. Touché. I hope the ACCC keeps an eye on Qantas prices if REX doesn't keep up those routes.

I wasn't aware QR flew domestically.as referred to by the post you were.challenging

Fair enough . With that carve out, the poster there seems to think the international market isn't a free market, so we are in rare agreement.

 

[antycbr]

All this talk of MEL-ABX and MEL-BWT, if Rex was so popular why didn’t locals keep supporting them? Rex quite often does the dummy spit approach whenever there is a competitor, rather than differentiating themselves.

Our regions have gotten richer with tree changers and they create additional demand for services that connect to international and interstate services. QantasLink would often start an out and back turn in the middle of the day to meet this demand, whereas ZL would have crew overnight to operate an early morning services. Regional people also have Qantas earning credit cards and other inducements to use Qantas rather than Rex which was far too late into the loyalty arena.

In some of the more closely settled regions there have been improvements to the road network allowing accessibility to a jet airport. The demise of Grafton and Lismore are examples where Ballina and Coolangatta have made these airports redundant.

 

[servicerequired]

Rubbish! As indicated in the referred post, the single QF service prevents day return travel to ABX whereas with the prior three REX services a day this was possible.

That is incorrect - the single QF flight is designed for Albury Wodonga locals to be able to travel for the day to-and-from Melbourne ... out at 6:30 AM and back in at approx. 8:30 PM.

 

[jase05]

Staff out of pocket if true

https://twitter.com/x/status/1818172467258745174